Azenta Inc

Previous wording

We are a leading global provider of biological and chemical compound sample exploration and management solutions for the life sciences industry. We entered the life sciences market in 2011, leveraging our in-house precision automation and cryogenics capabilities that we were then applying in the semiconductor manufacturing market. This led us to develop solutions for automated ultra-cold storage. Since then, we have expanded our life sciences offerings through internal investments and through a series of acquisitions. We support our customers from research and clinical development to commercialization with our sample management and automated storage, as well as genomic services expertise to help our customers bring impactful therapies to market faster. We understand the importance of sample integrity and offer a broad portfolio of products and services supporting customers at every stage of the life cycle of samples including procurement, automated storage systems, genomic services and a multitude of sample consumables, informatics and data software, along with sample repository services. Our expertise, global footprint and leadership positions enable us to be a trusted global partner to pharmaceutical, biotechnology and life sciences research institutions. In total, we employ approximately 3,000 full-time employees, part-time employees and contingent workers worldwide as of December 31, 2024 and have sales in approximately 80 countries. We are headquartered in Burlington, Massachusetts and have operations in North America, Asia, and Europe.

Current wording

We are a leading global provider of biological and chemical compound sample exploration and management solutions for the life sciences industry. We entered the life sciences market in 2011, leveraging our in-house precision automation and cryogenics capabilities that we were then applying in the semiconductor manufacturing market. This led us to develop solutions for automated ultra-cold storage. Since then, we have expanded our life sciences offerings through internal investments and through a series of acquisitions. We support our customers from research and clinical development to commercialization with our sample management and automated storage, as well as genomic services expertise to help our customers bring impactful therapies to market faster. We understand the importance of sample integrity and offer a broad portfolio of products and services supporting customers at every stage of the life cycle of samples including procurement, automated storage systems, genomic services and a multitude of sample consumables, informatics and data software, along with sample repository services. Our expertise, global footprint and leadership positions enable us to be a trusted global partner to pharmaceutical, biotechnology and life sciences research institutions. In total, we employ approximately 3,000 full-time employees, part-time employees and contingent workers worldwide as of March 31, 2025 and have sales in approximately 86 countries. We are headquartered in Burlington, Massachusetts and have operations in North America, Asia, and Europe.

Previous wording

Our performance for the three months ended December 31, 2024 and 2023 is as follows:

Current wording

Our performance for the three and six months ended March 31, 2025 and 2024 is as follows:

Previous wording

Revenue increased 4% for the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year, driven by revenue growth in both our Multiomics and Sample Management Solutions segments. In Multiomics, revenue increased in Next Generation Sequencing and Gene Synthesis services, partially offset by a decline in Sanger sequencing. In Sample Management Solutions, revenue increased in Sample Repository Solutions and Core Products, particularly in Consumables and Instruments and Clinical and Cryogenic Stores Systems. Gross margin was 47% for the three months ended December 31, 2024 compared to 44% for the corresponding period in the prior fiscal year, driven by higher revenues and margin expansion across the business, particularly in our Sample Management Solutions segment, mostly driven by operational efficiencies, sales mix, and the impact of certain non-recurring items recorded in the corresponding period in the prior fiscal year. Operating expenses increased during the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year driven by higher selling, general and administrative expenses, partially offset by lower research and development expense and lower restructuring charges. We generated a loss from continuing operations of $9.4 million for the three months ended December 31, 2024 compared to loss from continuing operations of $7.2 million for the corresponding period in the prior fiscal year, primarily driven by lower interest income and higher income tax expense, partially offset by higher revenue and operational efficiencies. We generated a net loss of $13.3 million for the three months ended December 31, 2024 compared to a net loss of $15.7 million for the three months ended December 31, 2023, primarily due to decreased loss from discontinued operations offsetting the increased loss from continuing operations.

Current wording

Revenue increased 5% for both the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year, driven by revenue growth in both our Sample Management Solutions and Multiomics segments. The revenue growth in our Sample Management Solutions segment was primarily driven by strong performance in Sample Repository Solutions and Core Products, particularly in Consumables and Instruments and Clinical Stores Systems. The revenue growth in our Multiomics segment was primarily driven by Next Generation Sequencing services, partially offset by declines in Sanger sequencing and Gene Synthesis services. Gross margin was 46% for both the three and six months ended March 31, 2025 compared to 44% for both the corresponding periods in the prior fiscal year. The gross margin increase was primarily driven by higher revenue and gross margin expansion across the business, particularly in our Sample Management Solutions segment, mostly driven by operational efficiencies, sales mix, and the impact of certain non-recurring items recorded in the corresponding periods in the prior fiscal year. Operating expenses for the three and six months ended March 31, 2025 decreased $2.8 million and $0.8 million, respectively, compared to the corresponding periods in the prior fiscal year, primarily driven by the non-recurring impairment of intangible assets recorded in three months ended March 31, 2024 and lower research and development expense, partially offset by higher stock-based compensation expense and higher transformation costs. We generated a loss from continuing operations of $18.2 million and $27.6 million, respectively, for the three and six months ended March 31, 2025 compared to loss from continuing operations of $16.2 million and $23.4 million, respectively, for the corresponding periods in the prior fiscal year, primarily driven by lower interest income and higher income tax expense, partially offset by higher revenue and operational efficiencies. We generated a net loss of $40.5 million and $53.8 million, respectively, for the three and six months ended March 31, 2025 compared to a net loss of $136.9 million and$152.6 million, respectively, for the three and six months ended March 31, 2024, primarily due to decreased loss from discontinued operations offsetting the increased loss from continuing operations.

Previous wording

Please refer to the commentary provided below for further discussion and analysis of the factors contributing to our results from operations for the three months ended December 31, 2024 compared to the three months ended December 31, 2023.

Current wording

Please refer to the commentary provided below for further discussion and analysis of the factors contributing to our results from operations for the three and six months ended March 31, 2025 compared to the three and six months ended March 31, 2024.

Previous wording

Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, transformation costs, restructuring charges, governance-related matters, merger and acquisition costs and costs related to share repurchase, and other unallocated corporate expenses to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included under “Operating Income (Loss)” and “Gross Margin” below.

Current wording

Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization and impairment of intangible assets, transformation costs, restructuring charges, governance-related matters, merger and acquisition costs and costs related to share repurchase, and other unallocated corporate expenses to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included under “Operating Income (Loss)” and “Gross Margin” below.

Previous wording

Our revenue performance for the three months ended December 31, 2024 and 2023 is as follows:

Current wording

Our revenue performance for the three and six months ended March 31, 2025 and 2024 is as follows:

Previous wording

Our Sample Management Solutions segment revenue for the three months ended December 31, 2024 increased 3% compared to the corresponding prior fiscal year period driven by revenue growth in both Sample Repository Services and Core Products businesses, particularly in Consumables and Instruments and Clinical and Cryogenic Stores Systems.

Current wording

Our Sample Management Solutions segment revenue for the three and six months ended March 31, 2025 increased 8% and 5%, respectively, compared to the corresponding prior fiscal year periods driven by revenue growth in both Sample Repository Services and Core Products businesses, particularly in Consumables and Instruments and Clinical Stores Systems.

Previous wording

Our Multiomics segment revenue for the three months ended December 31, 2024 increased 6% compared to the corresponding prior fiscal year period driven by revenue growth in Next Generation Sequencing and Gene Synthesis services, partially offset by a decline in Sanger sequencing services.

Current wording

Our Multiomics segment revenue for the three and six months ended March 31, 2025 increased 2% and 4%, respectively, compared to the corresponding prior fiscal year periods driven by revenue growth in Next Generation Sequencing services, partially offset by declines in Gene Synthesis and Sanger sequencing services.

Previous wording

Our operating income (loss) performance for the three months ended December 31, 2024 and 2023 is as follows (in thousands, except percentages):

Current wording

Our operating income (loss) performance for the three and six months ended March 31, 2025 and 2024 is as follows (in thousands, except percentages):

Previous wording

Operating income for the Sample Management Solutions segment was $1.6 million for the three months ended December 31, 2024 compared to an operating loss of $1.5 million in thecorresponding period in the prior fiscal year. The Sample Management Solutions segment operating margin was 1.9%, an increase of 380 basis points for the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year. The increase in operating income and operating margin were primarily driven by higher revenue and margin expansion, partially offset by increased operating expenses. Adjusted operating income was $2.3 million for the three months ended December 31, 2024 compared to adjusted operating loss of $0.6 million in the corresponding period in the prior fiscal year. Adjusted operating margin was 2.9%, an increase of 363 basis points for the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year. Adjusted operating income and margin exclude the impact of amortization of intangible assetsof $0.7 million and $0.9 million for the three months ended December 31, 2024 and 2023, respectively, and transformation costs of$0.1 million for the three months ended December 31, 2024.

Current wording

Operating income for the Sample Management Solutions segment was $0.6 million and $2.1 million, respectively, for the three and six months ended March 31, 2025 compared to an operating loss of $2.9 million and $4.4 million, respectively, in thecorresponding periods in the prior fiscal year. The Sample Management Solutions segment operating margin increased 461 basis points and 418 basis points, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year. The increases in operating income and operating margin were primarily driven by higher revenue and gross margin expansion, partially offset by increased transformation costs. Adjusted operating income was $4.6 million and $6.9 million, respectively, for the three and six months ended March 31, 2025 compared to adjusted operating loss of $1.5 million and $2.1 million, respectively, in the corresponding periods in the prior fiscal year. Adjusted operating margin increased 774 basis points and 566 basis points, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year. Adjusted operating income and margin exclude the impact of amortization of intangible assets, transformation costs and other adjustments.

Previous wording

Operating loss for the Multiomics segment was $3.4 million for the three months ended December 31, 2024 compared to an operating loss of $4.3 million in the corresponding period in the prior fiscal year. The Multiomics segment operating margin was (5.1)%, an increase of 175 basis points for the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year. The decrease in operating loss and increase in operating margin were primarily driven by higher revenue and gross profit, supported by operational efficiency. Adjusted operating loss was $2.5 million for the three months ended December 31, 2024 compared to adjusted operating loss of $3.3 million in the corresponding period of the prior fiscal year. Adjusted operating margin was (3.8)%, an increase of 143 basis points for the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year. Adjusted operating loss and margin exclude the impact of amortization related to completed technology of $0.9 million and $1.0 million for the three months ended December 31, 2024 and 2023, respectively.

Current wording

Operating loss for the Multiomics segment was $6.1 million and$9.5 million, respectively, for the three and six months ended March 31, 2025 compared to an operating loss of $3.9 million and $8.2 million, respectively, in the corresponding periods in the prior fiscal year. The Multiomics segment operating margin decreased 335 basis points and 75 basis points, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year. The increase in operating loss and decrease in operating margin were primarily driven by lower revenue for Gene Synthesis and Sanger sequencing services, partially offset by higher revenue and gross margin expansion for Next Generation Sequencing services. Adjusted operating loss was $5.3 million and $7.8 million, respectively, for the three and six months ended March 31, 2025 compared to adjusted operating loss of $2.9 million and $6.1 million, respectively, in the corresponding periods in the prior fiscal year. Adjusted operating margin decreased 371 basis points and 109 basis points, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year. Adjusted operating loss and margin exclude the impact of amortization related to completed technology, restructuring charges and other adjustments.

Previous wording

Our gross margin performance for the three months ended December 31, 2024 and 2023 is as follows (in thousands, except percentages):

Current wording

Our gross margin performance for the three and six months ended March 31, 2025 and 2024 is as follows (in thousands, except percentages):

Previous wording

The Sample Management Solutions segment gross margin was 46.9% for the three months ended December 31, 2024, an increase of 482 basis points compared to the corresponding period in the prior fiscal year. Adjusted gross margin was 47.8% for the three months ended December 31, 2024, an increase of 464 basis points compared to the corresponding period in the prior fiscal year, driven by higher gross margin for both Core Products and Sample Repository Services. The increase in gross margin was mostly driven by improved operational efficiencies, sales mix, and the impact of certain non-recurring items recorded in the same period last year. Adjusted gross margin excludes the impact of amortization related to completed technology of $0.6 million and $0.8 million for the three months ended December 31, 2024 and 2023, respectively, and transformation costs of $0.1 million for the three months ended December 31, 2024.

Current wording

The Sample Management Solutions segment gross margin increased 344 basis points and 416 basis points, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year. Adjusted gross margin increased 337 basis points and 405 basis points, respectively, for the three and six months ended March 31, 2025, compared to the corresponding periods in the prior fiscal year. The increases in gross margin and adjusted gross margin were primarily driven by higher revenue, operational efficiencies, sales mix, and the impact of certain non-recurring items recorded in the same period last year.

Previous wording

The Multiomics segment gross margin was 46.1% for the three months ended December 31, 2024, an increase of 70 basis points compared to the corresponding period in the prior fiscal year. Adjusted gross margin was 47.4% for the three months ended December 31, 2024, an increase of 34 basis points compared to the corresponding period in the prior fiscal year, driven by higher gross margin for the Next Generation Sequencing and Gene Synthesis services, partially offset by lower gross margin for Sanger sequencing. The increase in gross margin for Next Generation Sequencing and Gene Synthesis was driven by higher revenues and operational efficiencies; the margin pressure in Sanger sequencing was primarily driven by lower revenues. Adjusted gross margin excludes the impact of amortization related to completed technology of $0.9 million and $1.0 million for the three months ended December 31, 2024 and 2023, respectively.

Current wording

The Multiomics segment gross margin decreased 105 basis points and 15 basis points, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year. Adjusted gross margin decreased 137 basis points and 44 basis points, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year. The decreases in gross margin and adjusted gross margin were primarily driven by lower revenue for Gene Synthesis and Sanger sequencing services, partially offset by higher revenue and operational efficiency for Next Generation Sequencing services.

Previous wording

Our research and development expenses for the three months ended December 31, 2024 and 2023 are as follows:

Current wording

Our research and development expenses for the three and six months ended March 31, 2025 and 2024 are as follows:

Previous wording

Total research and development expenses decreased $0.9 million for the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year, driven by cost reduction initiatives across the business, primarily decreased compensation and benefits expense.

Current wording

Total research and development expenses decreased $0.9 million and $1.8 million, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year, driven by cost reduction initiatives across the business, primarily decreased compensation and benefits expense.

Previous wording

Our selling, general and administrative expenses for the three months ended December 31, 2024 and 2023 are as follows:

Current wording

Our selling, general and administrative expenses for the three and six months ended March 31, 2025 and 2024 are as follows:

Previous wording

Total selling, general and administrative expenses increased $3.3 million for the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year, primarily driven by higher stock-based compensation expense and one-time costs related to the Company's leadership changes.

Current wording

Total selling, general and administrative expenses increased $2.5 million and $5.9 million, respectively, for the three and six months ended March 31, 2025 compared to the corresponding periods in the prior fiscal year, primarily due to higher stock-based compensation expense and one-time costs related to the Company's leadership changes, partially offset by decreased compensation and benefits expense and third-party service expenses.

Previous wording

Restructuring charges were$0.4 millionfor thethree months ended December 31, 2024, a decrease of $0.4 million compared to the three months ended December 31, 2023 driven by decreased activity on the cost saving initiatives launched in fiscal year 2024. See Note 7,Restructuring in the notes to the unaudited condensed consolidated financial statements included in the section titled “Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Current wording

Restructuring charges were$3.6 millionfor the three months ended March 31, 2025, an increase of $0.2 million compared to the corresponding period in the prior fiscal year. Restructuring charges were $4.0 million for the six months ended March 31, 2025, a decrease of $0.2 million compared to the corresponding period in the prior fiscal year. Please refer to Note 7,Restructuring in the notes to the unaudited condensed consolidated financial statements included in the section titled “Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Previous wording

Interest income, net–* *We recorded interest income of$4.3 millionfor thethree months ended December 31, 2024, compared to $10.0 million recorded for the three months ended December 31, 2023. The decrease in interest income is due to decreased investments in marketable securities during the three months ended December 31, 2024 compared to the corresponding period in the prior fiscal year. Please refer to Note 4,Marketable Securities and Note 5,Derivative Instruments in the notes to the unaudited condensed consolidated financial statements included in the section titled “Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

Interest income, net–* *We recorded interest income of$4.5 million and $8.8 millionfor thethree and six months ended March 31, 2025, respectively, compared to $9.5 million and $19.4 million recorded for the three and six months ended March 31, 2024, respectively. The decrease in interest income year over year is due to decreased investments in marketable securities. Please refer to Note 4,Marketable Securities and Note 5,Derivative Instruments in the notes to the unaudited condensed consolidated financial statements included in the section titled “Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Previous wording

Other income (expense), net– We recorded other income of $1.2 million for the three months ended December 31, 2024, compared to other income of $0.5 million for the three months ended December 31, 2023, which primarily relates to foreign exchange gains and losses resulting from foreign currency denominated transactions and the revaluation of foreign currency denominated assets and liabilities.

Current wording

Other income (expense), net– We recorded other income of $1.2 million for the three months ended March 31, 2025 compared to $0.2 million of other expense in the corresponding period in the prior fiscal year. We recorded other income of $2.4 million for the six months ended March 31, 2025, an increase of $2.1 million compared to the corresponding period in the prior fiscal year. Other income (expense) primarily relates toforeign exchange gains and losses resulting from foreign currency denominated transactions and the revaluation of foreign currency denominated assets and liabilities. The increase in the three and six months ended March 31, 2025 was also attributable to a $2.1 million gain from cash proceeds received from a cost method investment which had no cost basis.

Previous wording

We recorded income tax expense of $3.6 million for the three months ended December 31, 2024, which was primarily driven by the profits in our foreign jurisdictions and current state income taxes in jurisdictions where we do not have a net operating loss carryover. Additionally, tax expense is generated on a global loss because the U.S. tax loss is not being benefited due to a valuation allowance against U.S. deferred tax assets.

Current wording

We recorded income tax expense of $7.7 million and $11.2 million during the three and six months ended March 31, 2025, respectively. The tax expense for the three and six months ended March 31, 2025 was primarily driven by a $6.6 million tax expense related to a change in the indefinite reinvestment assertion and the expectation to repatriate cash to the United States from a China subsidiary. The tax expense is also driven by profits in foreign jurisdictions and current state income taxes in jurisdictions where we do not have a net operating loss carryover. Additionally, tax expense is generated on a global loss because we do not benefit from the U.S. tax loss due to a valuation allowance against U.S. deferred tax assets.

Previous wording

We recorded income tax expense of $1.4 million during the three months ended December 31, 2023. The tax expense for the three months ended December 31, 2023 was primarily driven by the pre-tax income from foreign operations during the period, a $0.5 million stock compensation shortfall expense for tax deductions that are lower than the associated book compensation expense and a $0.6 million expense related to a valuation allowance on beginning of year U.S. state deferred tax assets.

Current wording

We recorded income tax expense of $1.2 million and $2.6 million during the three and six months ended March 31, 2024, respectively. The tax expense was primarily driven by a $1.7 million of charge related to a valuation allowance recorded against deferred tax assets in a foreign subsidiary during the three months ended March 31, 2024. Tax expense also includes $0.5 million of stock compensation shortfall expense for tax deductions that were lower than the associated book compensation expense during the six months ended March 31, 2024 and $0.7 million of expenses related to a valuation allowance on beginning of year U.S. state deferred tax assets.

Previous wording

During the first quarter of fiscal year 2025, following approval by our Board of Directors, we publicly announced our plan to sell the B Medical Systems business. Results related to the B Medical Systems segment are included within discontinued operations for the three months ended December 31, 2024 and 2023. Revenue from discontinued operations was $17.6 million and $12.6 million, respectively, for the three months ended December 31, 2024 and 2023. Loss from discontinued operations, net of tax, was $3.9 million and $8.5 million, respectively, for the three months ended December 31, 2024 and 2023. The loss from discontinued operations includes only direct operating expenses incurred that (1) are clearly identifiable as costs being disposed of upon completion of the sale and (2) will not be continued by the Company on an ongoing basis. Indirect expenses which supported the B Medical Systems segment and remain part of continuing operations, are not reflected in loss from discontinued operations. Please refer to Note 3,Discontinued Operations, in the notes to the unaudited condensed consolidated financial statements included in the section titled “Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

During the first quarter of fiscal year 2025, following approval by our Board of Directors, we publicly announced our plan to sell the B Medical Systems business. Results related to the B Medical Systems segment are included within discontinued operations for the three and six months ended March 31, 2025 and 2024. Revenue from discontinued operations was $17.2 million and $22.8 million for the three months ended March 31, 2025 and 2024, respectively. Revenue from discontinued operations was $34.8 million and $35.4 million for the six months ended March 31, 2025 and 2024, respectively. Loss from discontinued operations, net of tax, was $22.3 million and $26.2 million for thethree and six months ended March 31, 2025, respectively. Loss from discontinued operations was $120.7 million and $129.2 million for the three and six months ended March 31, 2024, respectively. Loss from discontinued operations includes only direct operating expenses incurred that (1) are clearly identifiable as costs being disposed of upon completion of the sale and (2) will not be continued by the Company on an ongoing basis. Indirect expenses which supported the B Medical Systems segment and remain part of continuing operations, are not reflected in loss from discontinued operations. Please refer to Note 3,Discontinued Operations, in the notes to the unaudited condensed consolidated financial statements included in the section titled “Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Previous wording

As of December 31, 2024, we had cash and cash equivalents, restricted cash, and marketable securities of $503.4 million and stockholders’ equity of$1.7 billion. We believe that our current cash and cash equivalents will enable us to fund our operating expenses and capital expenditure requirements for at least one year from the date of this Quarterly Report on Form 10-Q and for the foreseeable future thereafter. The current global economic environment makes it difficult for us to predict longer-term liquidity requirements with sufficient certainty. We may be unable to obtain financing that may be required on terms favorable to us, if at all. If adequate funds are not available to us on acceptable terms or otherwise, we may be unable to successfully develop or enhance products and services, respond to competitive pressures, or take advantage of acquisition opportunities, any of which could have a material adverse effect on our business, financial condition and operating results.

Current wording

As of March 31, 2025, we had cash and cash equivalents, restricted cash, and marketable securities of $513.3 million and stockholders’ equity of$1.7 billion. We believe that our current cash and cash equivalents will enable us to fund our operating expenses and capital expenditure requirements for at least one year from the date of this Quarterly Report on Form 10-Q and for the foreseeable future thereafter. The current global economic environment makes it difficult for us to predict longer-term liquidity requirements with sufficient certainty. We may be unable to obtain financing that may be required on terms favorable to us, if at all. If adequate funds are not available to us on acceptable terms or otherwise, we may be unable to successfully develop or enhance products and services, respond to competitive pressures, or take advantage of acquisition opportunities, any of which could have a material adverse effect on our business, financial condition and operating results.

Previous wording

As of December 31, 2024, we had$124.6 million of cash, cash equivalents and restricted cash held outside of the United States, whichare not currently needed for U.S. operations. Our marketable securities are generally readily convertible to cash without a material adverse impact.

Current wording

As of March 31, 2025, we had $144.5 million of cash, cash equivalents and restricted cash held outside of the United States whichare not currently needed for U.S. operations. We had approximately $52 million of cash in China as of March 31, 2025. We began repatriating the cash to the United States from China during the third quarter of the fiscal year 2025 and have provided for $6.6 million of deferred income taxes related to the repatriation plan as of March 31, 2025. Our marketable securities are generally readily convertible to cash without a material adverse impact.

Previous wording

Our cash flows on a total company consolidated basis for the three months ended December 31, 2024 and 2023 were as follows:

Current wording

Our cash flows on a total company consolidated basis for the six months ended March 31, 2025 and 2024 were as follows:

Previous wording

Cash inflows from operating activities for the three months ended December 31, 2024 were$30.6 million, primarily due to increased revenue and collections and a U.S. federal tax refund of $11.5 million received in the three months ended December 31, 2024. Investing activities for the three months ended December 31, 2024 include $40.8 million of purchases of marketable securities, offset by $125.6 million for sales and maturities of marketable securities. Financing activities for the three months ended December 31, 2024 include $4.9 million of excise tax payments related to our share repurchases settled in fiscal year 2024.

Current wording

Cash inflows from operating activities for the six months ended March 31, 2025 were$44.2 million, primarily due to increased revenue and collections and a U.S. federal tax refund of $11.5 million received in the six months ended March 31, 2025. Investing activities for the six months ended March 31, 2025 include $236.2 million in purchases of marketable securities, partially offset by $184.6 million in sales and maturities of marketable securities. Financing activities for the six months ended March 31, 2025 include $11.4 million of excise tax payments related to our share repurchases settled in fiscal year 2024.

Previous wording

As of December 31, 2024, we had non-cancellable commitments of $50.1 million, comprised of purchase orders for inventory of $36.0 million and other operating expense commitments of $14.1 million.

Current wording

As of March 31, 2025, we had non-cancellable commitments of $57.2 million comprised of purchase orders for inventory of $44.2 million and other operating expense commitments of $13.0 million.