The Diagnostics segment revenue increased by 1% YoY, driven by a 12.4 million increase in immunodiagnostics revenue and an increase of $0.6 million in reproductive health revenue. This indicates strength in specific areas of the Diagnostics business.

The company repurchased 188,532 shares of common stock under the repurchase program for an aggregate cost of $19.3 million during the quarter, with $329.6 million remaining available for repurchases. This demonstrates a commitment to returning capital to shareholders.

Management indicates that proceeds from the sale of the Business will be used for funding upcoming debt maturities, opportunistic share repurchases, and continued strategic and value-creating acquisitions. This suggests a balanced approach to capital allocation.

Despite revenue decline and gross margin pressure, operating margin improved due to cost containment and productivity initiatives. This indicates effective management of expenses.

The company is managing supply chain disruptions effectively with pricing actions, productivity gains, and transportation cost initiatives. This suggests effective management of supply chain issues.

The company is actively managing capital allocation with debt repayment, share repurchases, and strategic acquisitions. This suggests a disciplined approach to capital deployment.

The company's revenue is highly dependent on the volume and timing of orders received during the quarter. Negative fluctuations in customers' markets, the inability of customers to secure credit or funding, restrictions in capital expenditures, general economic conditions, cuts in government funding or unfavorable changes in government regulations would likely result in a reduction in demand for our products and services.

The company's business is affected by global economic and political conditions as well as the state of the financial markets, particularly as the United States and other countries balance concerns around debt, inflation, growth and budget allocations in their policy initiatives.

Patent and trade secret protection is important to us because developing new products, processes and technologies gives us a competitive advantage, although it is time-consuming and expensive. We own many United States and foreign patents and intend to apply for additional patents.

The company encounters aggressive competition from numerous competitors in many areas of our business. We may not be able to compete effectively with all of these competitors. To remain competitive, we must develop new products and periodically enhance our existing products.

We anticipate that we may also have to adjust the prices of many of our products to stay competitive. In addition, new competitors, technologies or market trends may emerge to threaten or reduce the value of entire product lines.

The success of our new product offerings will depend upon several factors, including our ability to: accurately anticipate customer needs; innovate and develop new reliable technologies and applications; receive regulatory approvals in a timely manner; successfully commercialize new technologies in a timely manner; price our products competitively, and manufacture and deliver our products in sufficient volumes and on time; and differentiate our offerings from our competitors' offerings.

The company is working to improve productivity with pricing actions, productivity gains and transportation cost initiatives. Rebranding costs were $1.6 million for the three months ended June 30, 2024.

Selling, general and administrative expenses for the three months ended June 30, 2024 were $251.7 million, as compared to $267.0 million for the three months ended July 2, 2023, a decrease of $15.4 million, or 6%.

Research and development expenses for the three months ended June 30, 2024 were $48.1 million, as compared to $57.3 million for the three months ended July 2, 2023, a decrease of $9.1 million, or 16%.

The success of our new product offerings will depend upon several factors, including our ability to: accurately anticipate customer needs; innovate and develop new reliable technologies and applications; receive regulatory approvals in a timely manner; successfully commercialize new technologies in a timely manner; price our products competitively, and manufacture and deliver our products in sufficient volumes and on time; and differentiate our offerings from our competitors' offerings.

Many of our products are used by our customers to develop, test and manufacture their products. We must anticipate industry trends and consistently develop new products to meet our customers' expectations. In developing new products, we may be required to make significant investments before we can determine the commercial viability of the new product.

We may also suffer a loss in market share and potential revenue if we are unable to commercialize our technology in a timely and efficient manner. In addition, some of our licensed technology is subject to contractual restrictions, which may limit our ability to develop or commercialize products for some applications.

Cash and cash equivalents increased from $913.2 million to $1,248.1 million. At June 30, 2024, we had investments in U.S. treasury securities with a carrying amount of $706.1 million whose proceeds upon maturity are intended to be utilized to repay our outstanding 0.850% Senior Unsecured Notes due in September 2024.

As of June 30, 2024, we may have to pay contingent consideration related to acquisitions with open contingency periods of up to $80.9 million. As of June 30, 2024, we have recorded contingent consideration obligations of $30.5 million, of which $12.5 million was recorded in accrued expenses and other current liabilities, and $18.0 million was recorded in long-term liabilities.

The sale of the Business generated approximately $2.27 billion in cash proceeds. We expect to continue to use these proceeds for a combination of funding upcoming debt maturities, opportunistic share repurchases and continued strategic and value creating acquisitions.

Expenses incurred in connection with claims related to environmental conditions at locations where we conduct or formerly conducted operations.

We are subject to stringent data privacy and information security laws and regulations and changes in such laws or regulations, or our failure to comply with such requirements, could subject us to significant fines and penalties, which may have a material adverse effect on our business, financial condition or results of operations.

We are also subject to a variety of laws, regulations and standards that govern, among other things, the importation and exportation of products, the handling, transportation and manufacture of toxic or hazardous substances, the collection, storage, transfer, use, disclosure, retention and other processing of personal data, and our business practices in the United States and abroad such as anti-bribery, anti-corruption and competition laws.

Our business is affected by global economic and political conditions as well as the state of the financial markets, particularly as the United States and other countries balance concerns around debt, inflation, growth and budget allocations in their policy initiatives.

Our business is also affected by local economic environments, including inflation, recession, financial liquidity, interest rates and currency volatility or devaluation. Environmental events and political changes, including war or other conflicts, such as the current conflicts in Ukraine and the Middle East, some of which may be disruptive, could interfere with our supply chain, our customers and all of our activities in a particular location.

Global health crises of unknown duration, wars, conflicts, or other changes in a country's or region's political or economic conditions, particularly in developing or emerging markets.