![]() The market launch of QX Continuum, our more affordable digital PCR product remains on track for year-end. And our pipeline is robust and growing, and we are seeing strong uptake in biopharma, translational research and oncology. In addition, demand for our newly launched ddPCR platform, QX600, and continued a strong trend line from Q4 2022. We saw an increase in demand for our clinical business globally as the impact of COVID finally receded. ![]() All of these factors affected gross margins for the quarter. We also experienced cost inflation that was higher than our net price realization in the quarter. Our backlog was also impacted by the shift in sales mix and by the placement of more clinical systems than expected at low margins. This also contributed to higher-than-typical finished goods inventory as we made the transfer. This was in part driven by a slower-than-expected ramp-up of production in our new Singapore facility. Of the estimated $30 million we expected to recognize from elevated 2022 backorders, we achieved a reduction of approximately $5 million in the first quarter, and we expect a similar amount for the remaining three quarters of the year. And as a result, backorder reduction was modest. On the operational front, we did not make the expected pace of progress within our supply chain to address our order backlog. And we now expect lower overall performance for the year in Russia, especially in our Life Science business. In addition, we saw a further tightening of sanctions, which impacted our business in Russia with a negative impact on sales in the quarter. We also saw a lower quarter for our process chromatography products, primarily reflecting the softness due to the timing of orders. This correlates with funding constraints the industry started to experience in the first quarter. While demand generally across the portfolio was in line with our expectations, there was some softness in smaller biopharma companies where we have seen historically strong demand for our life science products. However, we also experienced a number of market and operational challenges, which overall resulted in a lower-than-expected performance for the quarter. The first quarter of 2023 was characterized by solid growth for our core business coupled with a significant reduction of COVID-related sales. Before I begin the detailed first quarter discussion, I would like to ask Andy Last, our Chief Operating Officer, to provide an update on Bio-Rad's global operations. Good afternoon, and thank you all for joining us. With that, I will now turn call over to Ilan Daskal, our Executive Vice President and CFO. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release. The Company does not intend to update any forward-looking statements made during the call today.įinally, our remarks today will include references to non-GAAP financials, including net income and diluted earnings per share, which are financial measures that are not defined under Generally Accepted Accounting Principles. You should not place undue reliance on these forward-looking statements, and I encourage you to review our filings with the SEC, where we discuss in detail the risk factors in our business. Our actual results may differ materially from these plans, goal and expectations. These statements are based on assumptions and expectations of future events that are subject to risks and uncertainties. With me on the call today are Norman Schwartz, our Chief Executive Officer Ilan Daskal, Executive Vice President, Chief Financial Officer Andy Last, Executive Vice President and Chief Operating Officer Simon May, President of the Life Science Group and Dara Wright, President of the Clinical Diagnostics Group.īefore we begin our review, I would like to caution everyone that we will be making forward-looking statements about management's goals, plans and expectations, our future financial performance and other matters. Today, we will review the first quarter 2023 financial results and from an update on key business trends for Bio-Rad. Good afternoon, everyone, and thank you for joining us. I would now like to pass the conference over to our host, Ed Chung, Head of Investor Relations. All lines have been muted during the presentation portion of the call open for opportunities for question-and-answer session at the end. My name is Matt, and I'll be your moderator for today's call. Thank you for attending the Bio-Rad First Quarter 2023 Earnings Conference Call. ![]() Simon May - President, Life Science Groupĭara Wright - President, Clinical Diagnostics Group Ilan Daskal - Executive Vice President & Chief Financial OfficerĪndy Last - Executive Vice President & Chief Operating Officer Norman Schwartz - Chief Executive Officer ![]() ( NYSE: BIO) Q1 2023 Results Conference Call 5:00 PM ETĮd Chung - Vice President, Investor Relations ![]()
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