The company refined its strategy for the Mobidiag business, including discontinuing manufacturing and sales of certain products, closing facilities in Finland and France, and moving development activities to San Diego. This strategic shift resulted in restructuring charges.

The company completed the sale of its SSI ultrasound imaging business to SSH Holdings Limited for $1.9 million in cash. This disposition is not considered a strategic shift.

On April 26, 2024, the company executed an agreement to acquire Endomagnetics Ltd for approximately $310.0 million. Endomag develops and sells breast surgery localization and lymphatic tracing technologies.

The company is consolidating manufacturing of Breast Health capital equipment products to Newark, Delaware, and closing the Danbury, Connecticut facility. This transition is expected to be completed by Q3 2025.

The company repurchased 1.4 million shares for $150.0 million during the six months ended March 30, 2024, and $348.6 million remains available under the stock repurchase program.

The company recorded impairment charges of $25.9 million and $0.9 million to developed technology and trade names, respectively, related to its BioZorb product line and a $4.3 million impairment charge for an in-process research and development project from the Mobidiag acquisition, indicating challenges in realizing the expected value from these assets.

A product liability complaint was filed against the Company in Massachusetts state court by a group of plaintiffs who claim they sustained injuries caused by the BioZorb 3D Bioabsorbable Marker.

The company acknowledges that ongoing global challenges, including macroeconomic uncertainties, such as inflation, bank failures, rising interest rates, wars, and economic disruptions, could impact customers, suppliers, and the company's business.

The company notes the ongoing and possible future effects of supply chain constraints, including the availability of critical raw materials and components, as well as cost inflation in materials, packaging, and transportation.

Diagnostics product revenues decreased $16.0 million and $128.9 million, or 3.7% and 13.3%, respectively, in the current three and six month periods compared to the corresponding periods in the prior year primarily due to a decrease in Molecular Diagnostics revenues due to lower volumes, which we primarily attribute to lower demand from an improvement in the COVID-19 pandemic compared to the prior year.

GYN Surgical product revenues increased $11.9 million and $17.7 million, or 8.3% and 6.0%, respectively, in the current three and six month periods compared to the corresponding periods in the prior year primarily due to increases in the sales volume of our MyoSure devices and Fluent Fluid Management products, which we primarily attribute to the recovery of procedure rates from the impact of the COVID-19 pandemic.

Breast Health product revenues increased $0.1 million and $50.3 million, or 0.0% and 12.0%, respectively, in the current three and six month periods compared to the corresponding periods in the prior year. The increase in the current three and six month periods compared to the corresponding periods in the prior year is primarily due to an increase in volumes of our digital mammography systems, primarily 3Dimensions systems and related workstation and workflow products, including software, partially offset by a reduction in 2D system sales.

The cost of product revenues as a percentage of product revenues was 37.3% and 37.2%, respectively, in the current three and six month periods compared to 34.9% and 34.1% in the corresponding periods in the prior year.

The company is consolidating manufacturing of Breast Health capital equipment products to Newark, Delaware, and closing the Danbury, Connecticut facility. This transition is expected to be completed by Q3 2025.

Operating expenses increased in the current three month period compared to the corresponding period in the prior year primarily due to a $10.0 million charge related to the purchase of intellectual property to be used in a development project that has no future alternative use, an increase in restructuring charges of $4.2 million related to Mobidiag and lower BARDA credits partially offset by a decrease in research and development project spend and lower allocated charitable donations and marketing initiative spend.

Research and development expenses increased 0.8% in the current three month period compared to the corresponding period in the prior year primarily due to a $10.0 million charge related to the purchase of intellectual property to be used in a development project in Diagnostics that has no future alternative use and a decrease in credits recorded for funds received from the Biomedical Advanced Research and Development Authority (BARDA) grant to

During the second quarter of fiscal 2024, in connection with commencing its company-wide annual strategic planning process, the Company identified indicators of impairment in its BioZorb product line, which was part of the Focal acquisition.

During the first quarter of fiscal 2024, the Company assessed its only in-process research and development intangible asset from its Mobidiag acquisition for impairment.

The company repurchased 1.4 million shares for $150.0 million during the six months ended March 30, 2024, and $348.6 million remains available under the stock repurchase program.

The company used cash of $268.8 million for debt principal payments under our 2021 Credit Agreement, including a $250.0 million voluntary prepayment.

As part of this strategic investment, the Company contributed $24.5 million in return for 45% ownership in the Class A Common units of Maverix, and both the Company and KKR Comet have committed to make additional capital contributions in proportion to the ownership percentages upon meeting certain objectives and as approved by the Maverix board.

In March 2024, the SEC issued its final climate disclosure rule, which requires the disclosure of Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics in annual reports and registration statements, when material.

On April 4, 2024, the SEC issued an order staying the rule is pending the completion of an ongoing judicial review.

The Company is monitoring SEC developments and evaluating the impact of the new rule to its financial statements.

Diagnostics product revenues decreased $16.0 million and $128.9 million, or 3.7% and 13.3%, respectively, in the current three and six month periods compared to the corresponding periods in the prior year primarily due to a decrease in Molecular Diagnostics revenues of $21.6 million and $129.1 million, respectively, and a decrease in Blood Screening of $3.2 million and $2.0 million, respectively.

GYN Surgical product revenues increased $11.9 million and $17.7 million, or 8.3% and 6.0%, respectively, in the current three and six month periods compared to the corresponding periods in the prior year primarily due to increases in the sales volume of our MyoSure devices and Fluent Fluid Management products, which we primarily attribute to the recovery of procedure rates from the impact of the COVID-19 pandemic.

Interest expense increased in the current three and six month periods compared to the corresponding periods in the prior year, primarily due the increase in the variable interest rate under our 2021 Credit Agreement and a decrease in amounts received under interest rate swap agreements primarily due to a decrease in our overall hedged principal amount from $1.0 billion to $500 million.