Greetings and welcome to the Brooks Automation Q4 2021 Financial Results. During the presentation, all participants will be in a listen-only. Afterwards we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, November 10th, 2021. I will now turn the conference over to Sara Silverman, Director of Investor Relations. Please go ahead.

Thank you operator and good afternoon to everyone on the line today. We would like to welcome you to our earnings conference call for the fourth quarter of fiscal year 2021. Our fourth quarter earnings press release was issued after the close of the market today and is available on our Investor Relations website located at brooks.investorroom.com in addition to the supplementary PowerPoint slides that will be used during the prepared remarks today. Please note that due to the divestiture announced on September 20th, 2021, the results of the semiconductor automation business are treated as discontinued operations. I would like to remind everyone that during the course of the call, we will be making a number of forward-looking statements within the meaning of the Private Litigation Securities Act of 1995. There are many factors that may cause actual financial results or other events to differ from those identified in such forward-looking statements. I'd refer you to the section of our earnings release titled Safe Harbor Statement the Safe Harbor slide on the aforementioned PowerPoint presentation on our website and our various filings with the SEC, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We make no obligation to update these statements should future financial data or events occur that differ from the forward-looking statements presented today. We may refer to a number of non-GAAP financial measures, which are used in addition to and in conjunction with, results presented in accordance with GAAP. We believe the non-GAAP measures provide an additional way of viewing aspects of our operations and performance, but when considered with GAAP financial results and the reconciliation of GAAP measures they provide an even more complete understanding of the Brooks business. Non-GAAP measures should not be relied upon to the exclusion of the GAAP measures themselves. On the call with me today is our President and Chief Executive Officer, Steve Schwartz; and our Executive Vice President and Chief Financial Officer, Lindon Robertson. We will open the call with remarks from Steve on highlights of the fourth quarter. Then Lindon will provide a more detailed look into our financial results and our outlook for the first fiscal quarter of 2022. We will then take your questions at the end of the prepared remarks. With that I'd like to turn the call over to our CEO, Steve Schwartz.

Thank you, Sara. Good afternoon everyone and thank you for joining us today. We had another productive quarter setting ourselves up for what will be the next exciting phase of growth and continued market leadership, but with a considerably different configuration compared with the Brooks Automation you've come to know over the past decade. In the quarter, we announced the sale of our semiconductor automation business to Thomas H. Lee Partners and the launch of Azenta Life Sciences, our newly branded life sciences business. Both of these initiatives are key to delivering more shareholder value. The result of these actions will significantly change the makeup of the company. While we will continue to actively manage both businesses until the sale is complete, financial reporting changes are immediate and the semiconductor automation business is now classified as discontinued operations. Beginning with today's Q4 results, we will provide limited commentary about the semiconductor automation business, but enough to highlight another quarter of strong performance and to reinforce that the outlook remains solid. But most of what Lindon and I will convey relates to Azenta Life Sciences. So, before we move to the Life Sciences view only, I do want to reflect on the performance of the company in aggregate as we closed out fiscal year 2021 at the end of September. Total revenue for the quarter for the full company was $342 million, up 39% year-over-year and revenue for the full year was $1.2 billion, an increase of 33% from fiscal 2020. In the mix, the Q4 semiconductor automation revenue was $205 million, up 49% year-over-year. Suffice it to say the semiconductor automation business remains robust and the outlook for 2022 is for another very strong year. We'll not be giving the granular performance data for the semiconductor automation business. However, I'll…

Thank you, Steve. I now refer you back to the slide deck available on our website. Turning to Slide 3. As Steve referenced, I will be brief with remarks regarding the semi business, but I do want to highlight a few points with semi included. For clarity of how we performed against expectations? We achieved the high end of our prior guidance range for Q4 under the aggregate view with semi. In that context, non-GAAP earnings per share was $0.78 up 67% year-over-year. Both life sciences and semi showed continued top line growth and strong profitability. Semi had another high-growth quarter with $205 million of revenue up 49% year-over-year. And life sciences generated revenue of $137 million reaching the high end of our guidance expectations with growth of 27% year-over-year. Due to the pending sale, our reporting of results will treat the semiconductor business as discontinued operations and our continued operations will consist exclusively of our life sciences business. Total GAAP earnings per share was $0.29 and I will break this down on our next page. In the appendix of this presentation, we have provided more details in the aggregate view of non-GAAP results for direct comparison to historical results. However, the remainder of my remarks will focus on the continuing operations which consists of the Life Science Services and Life Science Products segment and represents the ongoing business. As mentioned Life Sciences finished the year strong with Q4 revenue of $137 million, up 27% year-over-year and up 24% on an organic basis. Both products and services business delivered over 20% growth for the quarter and the full year. Adjusted EBITDA margin was 15.5% and is net of 250 basis points headwind of overlapping G&A structure that is expected to roll off when the sale closes. I will provide more…

[Operator Instructions] First question is from David Saxon with Needham. And your line is open.

Great. Good afternoon and thanks so much for taking the questions. I guess my two questions first is, on SRS and second is on GENEWIZ. For SRS I think you said ex the alliance it grew around 25%. You noted some steady sample inflows and capacity expansion starting in the Cleveland Clinic et cetera. So just wondering if you could frame, how we should be thinking about SRS in the fiscal first quarter but also just fiscal 2022.

Yes. Hi, David. Thanks a lot for this. The growth has been really nice on the SRS business. We've seen two types of activity through 2021. One as we've highlighted in the past we've picked up two global customers that are looking for us and we're already engaged to start supporting their global sample collection. So that -- we're really an extension of their infrastructure and activity. And then secondly, as you've seen in 2021 we've also engaged in additional vaccine management as well. So as we go into Q1, our Services business does look to be quite stable and expanding. And on the SRS, it's no exception. In fact our services business, when we look into Q1 that is the stronger expansion step as we go into the December quarter. So, I think the strength here continues. The momentum does and we're quite excited about it.

Hey David, this is Steve. I'll give a little bit more certainty and uncertainty around the SRS business. So we talked about two large pharma companies that recently gave us basically all of their samples. And with one, we have almost all the North American samples relocated and we're starting this current month in Europe to do the similar kind of move to our European biorepository. So it's a phased stage here. On the one that we most recently won, we're consolidating the sample collections from multiple sites. So we have a team -- actually more than 20 people dispatched out at the sites cataloging, characterizing the sample collections. But all the while -- while we do that and then ultimately we move the samples to our biorepositories, we have clinical trial activity going on with them simultaneously. So we're quite active. There are multiple phases to each of these projects. The thing that we always were concerned about in the past, was we sign a contract and get a commitment, and then it was sometimes tough to mobilize the customers. What we found for these two particular customers is that they're mobilized and active. And as fast as we can move and they can move we're making great progress. So, it's pretty dependable in terms of how we see our outlook in the business both for the first and second quarter. And of course we're going after the next large companies to put things behind us in our pipeline.

Okay. Thanks for that. And my second is just on GENEWIZ. Can you just talk about the opportunity you have with cross-selling from the SRS platform into GENEWIZ? Is that meaningful today, or is it still fairly early stage? Thanks so much for taking the questions.

Yeah. So David, a couple of things. It's meaningful from the standpoint of there's a lot of activity and we're beginning to generate business. And as Azenta, it's a focus for the company. So we'll talk in some more specifics next week at the Analyst Day as we've prepared to get ourselves around answering that question. We see lower business levels right now but a lot of business activity. By the time we exit 2022, it will be measurable and meaningful. But already the engagements are strong. It's a matter of getting the entire commercial organization mobilized behind it and getting customers used to it. But a large number of our customers' purchase multiple capabilities from us, but you'll hear next week how we've unified the commercial organization to formalize that. So it's not a collection of transactions. It's a single transaction with multiple capabilities embedded. So we'll give a little bit of color to that next week and we will start to report on the synergies that come between the SRS and the genomic services business.

Great. Thanks and congrats on the quarter.

Thanks, David.

Thank you.

[Operator Instructions] The next question is from Mike Gokay with KeyBanc Capital Markets. Please go ahead.

Hey, guys. Thanks for the time. Lindon just on the guide, I'm guessing you'll provide FY 2022 here at the Analyst Day coming up. But I guess turning to 1Q midpoint implies about 14% compared to the 33% you just came off. Can you kind of just talk to the puts and takes there? And then are you fully discounting those COVID-related revenues here? I think it was what about $10 million in 1Q last year.

So not totally discounting it. What you're seeing Mike is almost a flat quarter, quarter-to-quarter sequentially and a wraparound on the rebound in Q4 last year when we had -- I'm sorry Q1 in the December quarter when you'll recall we had this rebound from catch-up on the genomics business, which really accelerated quite a lot at that point. Now I'm not -- we're not taking that for granted nor are we complacent with that. But the dynamics, I'll add a little color. We just spoke to the services business having a little strength into the December quarter. Our products business is expecting just a little bit softer. We had what I believe was a record growth quarter on our store systems in total. We had some remarkable placements of our cryo products and our large system stores being placed and work completed on large projects. And while it will continue to do well in the next quarter, it will be a touch softer. And our consumables we expect to be just a little bit softer too as people absorb what they've taken and wait for the new calendar year budgets to take more. So that's our expectation, a little softer on the products, a little stronger on services so still expansion quarter-to-quarter as I just highlighted on both the SRS and even on the GENEWIZ business. But on the compare it's bringing us back down into I'd say this atmosphere of around -- you can think of this as more in the high-teens, but I see your calculation on the 14%, 15% as that midpoint growth rate.

Great. And then Steve, I think, the number that stood out the most was the 79% reported growth in stores. Can you kind of unpack that a little bit? And is it specifically the cryo for cell and gene therapy? Are you starting to see customers -- obviously I think you're seeing customers buy multiple units, but are you also seeing customers in terms of validation of it in the manufacturing line and being able to put it in the CGMP setting are you seeing that starting to be more accepted and accelerated there?

Yes we are indeed starting to see it. On the we had a record quarter by far in the cryo space. It was the biggest quarter by far in shipments and in revenue. Just locally here in Massachusetts we shipped seven units for cell and gene therapy to a local company. We're starting to see those episodically, but they're beginning to fill in. So I think without question we're getting traction in that space and it's exciting time for us. So we're beginning to see people really understanding the need for automation here especially handling those critical samples at cryogenic temperatures and the momentum is building. And I can't tell you that it's going to sustain at quarters like that, but we'll see those coming more frequently. And we do have pretty high expectations for the business here beginning in fiscal 2022.

Great. Thanks for the time.

We have nothing from the phone. I'd like to turn it back to Lindon Robertson for closing remarks.

All right. Thank you very much. And for those who have tuned in with us obviously this was a transformational year for us and certainly a quarter of significant change in the dynamics of our business. It sets the stage for Azenta Life Sciences launch and we look forward to telling you much more about that on Tuesday at our Investor Day. And with that we really appreciate you following us your interest and tuning in with us. But we look forward to some more time with you next week. Thank you very much.

And that does conclude our call for today. And we thank everyone for participating and you may now disconnect.