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| And then if you look at the reagents business, the reagents continue to perform very well in the first quarter, and we expect that to continue for the rest of the year |
| The second area is that we are expecting our Informatics business to do better in the second half because it has easier comps |
| I think, again, reiterating what you said, we really -- we thought our 1Q performance was pretty strong |
| Our continued success with bringing novel new products to market and getting them on approved testing menus continues to be our playbook to help offset these continued demographic pressures |
| We continue to expect our non-COVID organic growth to improve in the back half given an anticipated normal Diagnostics business in China, and a return to growth in our software business |
| But I think overall, we are confident in the position that we are sitting in today and confident in our team’s ability to execute against our pipeline |
| Again, we are seeing positive signs from a volume perspective, and it’s going to step up here in 2Q, and we still expect to return to normal for the second half |
| So I’d say first is that from an instrumentation standpoint, we actually exceeded expectations here in the first quarter, growing in the low double digits |
| From a product perspective, our research reagents and Specialty Pharma Services continued their strong performance, and again grew in the low double digits organically in the quarter |
| We’re really happy and proud with it |
| And then the insourcing of oligos antibodies from Horizon and from BioLegend by the teams on both the Diagnostics and Life Sciences side of the business are, as I’ve said earlier, better than the expectation that we have from a synergy perspective |
| In the first quarter, we saw continued strength in this earlier-stage R&D across our large midsized customers that make up the vast majority of our revenue |
| We’re excited about the pipeline that we have for those businesses in the second half, and we’re confident in our ability to execute against it |
| We saw strong growth in our neonatal business, which offset declines in our genomic lab businesses |
| And so we are pleased by that execution |
| With that being said, we are expecting sequential improvements and absolute demand in 2Q in our diagnostics business in China |
| So we’re encouraged by the cash flow performance here in the first quarter |
| So it did low double digits here in the first quarter, and we’re pleased by the performance of that group |
| So we feel, again, as Max said, we feel really confident |
| We are very well positioned from a capital structure standpoint and have ample flexibility to pursue those investments we believe are in the best long-term interest for our shareholders |
| I think this shows the underlying strength and potential of this franchise once we get through the patient accessibility issues we faced over the last year or so |
| So we are very well protected from that perspective |
| But I’d say we’re extremely confident in the position that we are in today |
| I think let me just sort of take it a little at the macro level, right? We feel really good about our first quarter performance, which was strong and at the high end of our expectations despite evolving macro conditions and what we talked about China DX |
| Finally, we have a robust near-term pipeline of additional new product introductions slated for over the remainder of the year across our businesses, which we are excited about and look forward to getting in customers’ hands soon |
| As it pertains to our impact on the world overall, we are continuing to make good progress on our ESG journey, which is an integral part of Revvity and was reflected in a recent note was the improvement on our ESG rating with Moody’s, which put us well above our peer group overall |
| Vanadis, again continues to do very well, and we see that traction coming through |
| And California is a good example of how that has started taking traction, and we see a good momentum coming out of it |
| The second quarter will also be the lowest point of the year, and we are excited about the pipeline that we have there in the second half and are confident in our ability to execute against it |
| With strong organic revenue growth and mid-teens adjusted EPS growth expected over the medium term, Revvity is poised to make a lasting and unique impact on the world in many ways going forward |
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| This was down 47% year-over-year and down 44% organically due to the significant drop in COVID-related revenues versus a year ago |
| Our adjusted revenues were $675 million, which was down 30% due to the significant drop in COVID-related revenues compared to a year ago |
| Our immunodiagnostics business in China, which represents around 20% to 25% of our overall immunodiagnostics business and 5% to 6% of total company revenue, declined in the high teens organically when excluding COVID, which, as mentioned, was worse than our low double-digit expectation |
| Again, as Max said in his prepared remarks, China was coming into the quarter slightly worse than what our expectations were |
| Overall, our Diagnostics segment in China declined in the low double digits with immunodiagnostics declining in the high teens, which was worse than our low double-digit decline expectation |
| Moving beyond the P&L, we generated adjusted free cash of $51 million in the quarter, which on a year-over-year basis was pressured significantly from the meaningful drop in COVID related revenues |
| The 6% organic growth in the quarter, which was at the high end of our implied guidance, was despite our amino diagnostic business and China, which represents 5% to 6% of our total company revenue being softer than what we saw during 4Q and softer than our expectations coming into the quarter |
| And yes, there is the case that the macro environment continues to trend downward we must see a little bit softer results |
| One is that although the immunodiagnostics business in China is improving sequentially versus the first quarter, it is a little bit lighter than what we had initially anticipated coming into the year |
| Finally, our Applied Genomics business slightly declined year-over-year on a non-COVID basis in the quarter, similar to its performance in the fourth quarter |
| FX was a 3% headwind which was a point worse than we had expected and we had no contribution from recent acquisitions |
| And then I think as we started looking here in Q2, again, I think it’s factored into our guidance that we’re being cautious based on the trends of what we saw in the first quarter |
| So I know in the first quarter, you were looking for down low double, and it was down high teens |
| Despite the impressive performance so far, we are still just scratching the surface of our potential |
| Maybe first, just on China, you noted a little bit worse than you had initially anticipated there in immunodiagnostics |
| Obviously, we’re sort of -- there is a little bit of instrumentation challenges and headwinds that we had coming into this year, and that is playing out as expected |
| We do think that, that faced some headwinds here in the first quarter |
| It was down about mid-teens |
| While there remains a path to the 9% organic growth we initially expected at the beginning of the year, we felt it would be prudent to take a slightly more conservative approach to our outlook given the slower-than-expected ramp in our Diagnostics business in China so far this year, and what appears to be some increased uncertainty among some in pharma biotech and the genomic lab industries |
| I guess, first, you saw a deceleration in pharma and biotech after several quarters of double-digit growth there |
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