Ladies and gentlemen, thank you for joining us. My name is Desyree, and I will be your conference operator today. I would like to welcome everyone to the Bio-Rad First Quarter 2025 Earnings Results Conference Call and Webcast. I will now turn the conference over to Edward Chung, Head of Investor Relations. You may begin.

Thanks, Desyree. Good afternoon, everyone, and thank you for joining us. Today, we will review the first quarter 2025 financial results and provide an update on key business trends for Bio-Rad. With me on the call today are Norman Schwartz, our Chief Executive Officer; Jon DiVincenzo, President and Chief Operating Officer; and Roop Lakkaraju, Executive Vice President and Chief Financial Officer. Before we begin our review, I would like to remind everyone that we'll be making forward-looking statements about management's goals, plans, and expectations, our future financial performance, and other matters. These statements are based on assumptions and expectations of future events that are subject to risks and uncertainties. Our actual results may differ materially from these plans, goals, and expectations. 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. The company does not intend to update any forward-looking statements made during the call today. Finally, 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. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release. With that, I'll now turn the call over to our Chief Operating Officer, Jon DiVincenzo.

Hello, and thank you for joining today's call. Despite a challenging macro-environment with academic headwinds due to government funding and global trade disruptions from tariffs, we delivered solid Q1 results, exceeding consensus for both revenue and operating margins. Our Clinical Diagnostics business performed slightly better than forecast, while our Life Science segment experienced softness in academia and biopharma research. Notably, our bioproduction business saw positive momentum with year-over-year growth returning to our process chromatography business. We continue to prioritize bringing innovative products to our customers. In Q1, we launched several key menu expansions for our core life science portfolio, including a new PCR-based salmonella test for food safety and advancements to our portfolio of ddPCR Vericheck assays for cell and gene therapy. We are also strategically advancing Droplet Digital PCR as a valuable tool for oncology diagnosis and management through high-valued assays and key partnerships. Recent compelling clinical trial data published in Clinical Cancer Research utilizing Bio-Rad ddPCR technology demonstrated a strong correlation between circulated tumor DNA changes and treatment outcomes in lung cancer. This highlights the significant impact of our ddPCR platform on clinical decision-making and patient outcomes. Our team also demonstrated exceptional execution in driving productivity improvements and effective cost management, building on our lean initiatives. We proactively evaluated and are implementing mitigation strategies for tariff impacts in response to escalating geopolitical and trade tensions. In Diagnostics, we continue to show solid demand, offsetting reimbursement reductions in China with nearly 3% growth in the rest of the world. And in life science, we navigated academic and biopharma research funding headwinds, particularly in the U.S., while maintaining strong demand for consumables. Process Chromatography returned to growth as I stated and our DDPCR portfolio maintains its momentum and strong reagent and consumables growth. Our acquisition of Stilla Technologies remains on track for closing by the end of the third quarter. We are excited about the Stilla platform as it expands our offering in the digital PCR segment from gene expression to targeted rare mutation detection. We're planning a webinar following the close of the Stilla transaction to outline our strategy in digital PCR with the addition of the Stilla and Continuum platforms. During the quarter, I visited several of our global teams across three continents, including nine manufacturing sites and customer visits for both our Life Science and Clinical Diagnostics segments. These visits reinforce my confidence in our team's commitment, strength of our global organization, and fantastic relationships with our customers. Our investments in efficiency and productivity within our manufacturing sites and distribution centers are yielding tangible results. My travel included a meeting with the leaders of the German Red Cross Blood donation service, where we were recently awarded a multi-year contract renewal for our immunohematology platform, a testament to the quality and reliability of our solutions. At Bio-Rad, we continue to advance our abilities to develop innovative products, drive operational excellence, and build upon our relationships with customers in over 133 countries as we are laser-focused on delivering sustainable profitable growth. We thank you for your ongoing support, and I will now turn the call over to Roop for a review of our financial performance.

Thank you, Jon, and good afternoon. I'd like to start with a review of the first-quarter 2025 results. Overall, we executed well during the quarter, which allowed us to deliver revenue and operating profit and margin ahead of consensus estimates for Q1. Net sales for the first quarter of 2025 were approximately $585 million, which represents a 4.2% decline on a reported basis versus $611 million in Q1 of 2024. On a currency-neutral basis, this represents a 1.5% year-over-year decrease and was primarily driven by lower sales in our Life Science Group. Sales of Life Science Group in the first quarter of 2025 were $229 million compared to $242 million in Q1 of 2024, which is a decline of 5.4% on a reported basis and 3.5% on a currency-neutral basis, primarily reflecting ongoing softness in the biotech and academic research market, particularly in the Americas. Currency-neutral sales decreased in the Americas and Asia-Pacific, partially offset by increased sales in EMEA. Our Process Chromatography business experienced mid-teens growth on a year-over-year basis. The strength in Q1 was due to the timing of customers' orders, and we continue to expect high single-digit growth for this area in 2025. Excluding Process Chromatography sales, Core Life Science Group revenue decreased 7.5% year-over-year and 5.5% on a currency-neutral basis due to the softness across the markets for instrument demand. Sales of the Clinical Diagnostics Group in the first quarter of 2025 were approximately $357 million compared to $369 million in Q1 of 2024, which is a decrease of 3.2% on a reported basis and effectively flat on a currency-neutral basis. Increased demand for our quality control products was offset by the expected lower diabetes testing revenue, and we currently do not expect further reimbursement changes in China this year. On a geographic basis, currency-neutral sales decreased in Asia-Pacific, partially offset by increased sales in EMEA and the Americas. Q1 reported GAAP gross margin was 52.3% as compared to 53.4% in the first quarter of 2024. The decrease in gross margin was primarily driven by restructuring expenses related to the workforce reduction announced during the first quarter of 2025. SG&A expense for the first quarter of 2025 was $209 million or 35.7% of sales compared to $215 million or 35.2% in Q1 of 2024. The decrease in SG&A expense was primarily due to lower discretionary spending and employee-related costs, partially offset by restructuring costs. Research and development expense in the first quarter was $74 million or 12.6% of sales compared to $66 million or 10.9% of sales in Q1 of 2024. The higher year-over-year R&D was primarily due to restructuring costs, partially offset by lower employee-related expenses. Q1 operating income was approximately $24 million or 4% of sales compared to $45 million or 7.3% of sales in Q1 of 2024. Lower operating income is driven by higher restructuring costs, partially offset by the revenue mix and continued proactive expense management initiatives. During the quarter, interest and other income resulted in net other income of $28 million compared to net other income of $24 million last year. The change in fair market value of equity security holdings, primarily related to the ownership of Sartorius AG shares, contributed to our reported net income of $64 million or $2.29 per diluted share. The effective tax rate for the first quarter of 2025 was 23.3% compared to 21.8% for the same period in 2024. The higher rate in 2025 was driven by a geographical mix of earnings. Moving to the non-GAAP results. Non-GAAP financial measures, which exclude certain atypical and unique items that impact both gross and operating margins and other income, are detailed in the reconciliation table in our press release. First quarter non-GAAP gross margin was 53.8%, in line with consensus but lower than Q1 2024's results of 54.2%. First quarter non-GAAP operating margin was 10.8% compared to 9.7% in Q1 of 2024. The non-GAAP effective tax rate for the first quarter of 2024 was 20.6% compared to 22.4% for the same period in 2024. The lower rate in 2025 was driven by our geographical mix of earnings. Finally, non-GAAP net income for the first quarter of 2025 was $71 million or $2.54 diluted earnings per share. Moving on to the balance sheet. Total cash and short-term investments at the end of Q1 were $1,660 million compared to $1,665 million at the end of Q4 2024. Inventory at the end of Q1 was $790 million, up from $760 million in the prior quarter. For the first quarter of 2025, net cash generated from operating activities was $130 million compared to $70 million for Q1 of 2024. Net capital expenditures for the first quarter of 2025 were $34 million, and depreciation and amortization for the first quarter was $38 million. Regarding free cash flow for the first quarter of 2025, we were pleased with the generation of $96 million, which compares to $30 million in Q1 of 2024. We continue to target full year free cash flow of approximately $310 million to $330 million for 2025. During the first quarter, we purchased 399,295 shares of our stock for a total cost of $101 million or an average purchase price of approximately $253 per share. In April, we purchased an additional 422,648 shares of our stock for a total cost of $99 million, or an average purchase price of approximately $234 per share. We will continue to be opportunistic with our buyback program and still have $377 million available for share repurchases under the current Board authorized program. Moving on to the non-GAAP guidance for 2025. We are updating our 2025 full year guide to reflect the Q1 results, the evolving state of academic and biotech research funding, and the impact of recent changes in the macro economy, including tariffs. We recognize that the recent macro changes are causing uncertainty and remaining fluid. However, in the interest of full transparency, we're providing our best estimates of the impact of the known changes as of today. Overall, we now expect total currency-neutral revenue to be in the range of approximately a 1% decline to 1.5% growth or approximately 225 basis points lower than our previous guide. I'll start with the effect of the softer academic research funding as a result of changes in U.S. policy. We now expect these life science purchases to be more muted in 2025, in particular, demand for instruments as customers evaluate the impact of potential changes to government funding. We are also seeing reduced demand from biotech customers, particularly among small and mid-sized development stage companies that have become more conservative with equipment spending due to the increased volatility in the capital markets. As such, we now expect our Life Science business to be in the range of flat to down 3% for the full year, versus a growth of approximately 1.5% to 3.5% previously. Next, we are derisking our diagnostic growth outlook by approximately 100 basis points to reflect a softer macroeconomic environment, particularly in China, and now anticipate full year growth of approximately 0.5% to 2.5%. The net effect of the market softness in our business group is approximately a 100 basis point headwind to operating margin. Finally, the impact of tariffs. Our updated guidance considers tariffs that are in effect globally as of today and assumes no change in the current U.S. policy. The net impact of the tariffs is a 130 basis point headwind to operating margin, primarily due to U.S.-manufactured products that are imported into China. Included in this updated view are actions we are taking to partially mitigate the effects of the tariffs, such as surcharges, prepositioning inventory in certain countries, further regionalizing supply chains, and identifying additional in-region manufacturing opportunities. Factoring in the above, the updated full year non-GAAP gross margin is projected to be between 53% and 54.5%. Note that we were able to offset the impact from market softness through our actions, and the difference relative to our prior full year gross margin outlook of 55% to 55.5% is entirely due to the impact of tariffs. Full year non-GAAP operating margin is projected to be between 10% and 12% included in this range are the above considerations that I just spoke of. Additionally, we continue to be on track to achieve a key development milestone in Q3 2025 related to Saber Bio, which, as discussed previously, would result in a one-time in-process R&D charge of $10 million. As a result of the recent weakening U.S. dollar, we expect less of a headwind to our revenue and operating income than our prior guidance. We now expect approximately a 100 basis point headwind to 2025 revenue, an approximate 20 basis point impact on operating margin versus the prior 40 basis point effect. We estimate the non-GAAP full-year tax rate to be approximately 22% versus 23% previously, due to the change in the equity value of Sartorius investment. With our updated outlook for 2025, we recognize that there are many moving pieces and the situation is evolving rapidly. There's a wide range of scenarios that could ultimately play out. That said, we're trying to be prudent and transparent in providing the key headwinds that we are currently seeing in the marketplace. Where possible, we are focused on mitigating the impacts from proposed tariffs and global trade disruptions to deliver results for shareholders. As you've seen in the past year, management's approach to guidance is to be realistic in setting expectations. While we are adjusting our 2025 outlook, this does not shift our focus from the significant opportunities we see in enhancing business performance. Driving consistent topline growth remains central to our strategy and a key enabler of substantial margin expansion. We are confident that our ability to improve operational efficiency and strategically optimize our footprint will allow us to capture hundreds of basis points of margin expansion over the coming years. We're eager to share more about this opportunity and other critical aspects of our business at our Investor Day this fall. I'll now turn the call over to Norman for his remarks.

Okay. So I think, as Roop has alluded to, we continue to operate in a very dynamic environment. And I would say that in all my years in this business, I've never experienced such a prolonged period of macroeconomic headwinds and their impact on the growth of our business. I would say, especially for life science. However, we are still in the golden age of biology, and I continue to see a long runway ahead for life science research and for diagnostics, the two principal markets that we serve. We remain committed to our customers, the attractive markets that we serve, and certainly the contributions we can make, which positions Bio-Rad for consistent profitable growth. Second, I would say that with our strong balance sheet, we have tremendous optionality. We continue to invest in our business and remain active in evaluating inorganic opportunities, opportunities that potentially offer values to customers immediately. With the increased volatility in the equity market in the past few months, we are seeing more opportunities as valuations for assets have moderated relative to where they have been in recent years. And finally, I guess I would note that Bio-Rad has been resilient and has persevered through many cycles in our 70-plus-year history. To the credit and determination of Bio-Rad employees around the world, we continue to advance our corporate transformation and believe we'll come through this dynamic period even stronger than before. So Ed, that's all I have. Turn it back to you.

That concludes our prepared remarks, and now we'll open the line to take your questions. Operator?

Our first question comes from Patrick Donnelly with Citigroup. Your line is open.

Hi guys, thank you for taking the questions. Roop, probably one for you to start, not surprisingly, on tariffs. It sounds like you guys are layering in some impact into the guide. Can you just talk about maybe the gross impact, what mitigation efforts you guys are doing? It sounds like potential surcharges, I'm sure, some acceleration on the cost side. And what's the ability to contain this impact into 2025? Does some of it linger? Maybe just walk us through what you're seeing, what the mitigation efforts are, and how to think about this?

Yes, thank you, Patrick, for the question. As expected, there are several factors regarding the impact of tariffs. To start, our global presence is beneficial, but we currently lack manufacturing in China. The main tariff impacts come from U.S. products going to China and European products being sent to the U.S., which we are carefully monitoring. We are considering potential surcharges and have been working on positioning our inventory effectively. Additionally, we are exploring long-term solutions, such as local manufacturing opportunities, to enhance our supply chain. However, these solutions will take time, particularly for our diagnostics segment, which involves a lengthy regulatory process. The changes to our gross margin are primarily due to tariffs, and while we have managed to offset some market softness, we are looking at ways to address this by 2025. That said, the situation remains uncertain, and it’s difficult to predict what 2026 might look like at this stage.

Okay, that's helpful. And then just the academic side, obviously, that's worsened here over the past couple of months. What have you guys seen as we work our way through March and April? Obviously, the NIH proposal came out with that 40% cut. What's the expectation now for academic? And again, maybe just the cadence of what you saw as we worked our way through the quarter and into April on that segment would be helpful.

Yes, I can start and then have Norman and Jon add their thoughts as well. We have observed a significant decrease in funding recently, with a report indicating a 28% reduction overall. Throughout the first quarter, we were able to maintain performance, particularly in the consumables segment, which remained strong. The challenges were more pronounced in the instruments area, and this has worsened as we moved through Q1. Looking ahead to Q2, the ongoing uncertainty regarding funding levels and what the thresholds will be is creating additional challenges for activity. While we continue to see activity in consumables, the instrument segment remains difficult at this time.

Thank you. Maybe just to riff off that last question there. How wide is the gap at this point in growth between consumables and equipment?

I would say it's been a bit of a deterioration. If I just look at it sequentially in terms of the instrument sales on a sequential basis, Dan, it's probably down about 10% further decline. Consumables actually held up fairly well from a sequential standpoint in Q1 versus Q4, maybe just a tad down, but still very strong overall. Hopefully, that gives you the answer or perspective you're seeking.

Yes. So again, we don't have any China manufacturing, right? So that's first and foremost to understand. So you can imagine that the revenue that's going into China is either coming from the U.S. or Singapore predominantly or there's a bit in Europe as well. And the biggest piece of the tariff impact is those pieces obviously coming from the U.S. into China, and especially on the diagnostics side of the house. And so that's where we're seeing the largest impact of the tariffs overall in terms of what we've articulated.

And then your assumption on whether you absorbed that tariff on your profit and loss statement?

Yes. I mean, I think it's something we're evaluating. Obviously, we talked about surcharges that we're putting in place and we're working through that and have deployed that already. But as we think about how things are evolving, I think we're also mindful of how the situation is evolving on a geographic basis, right, especially China with the U.S. specifically.

It's important to remember that tariff surcharges come with consequences. Many customers operate with limited budgets, so these surcharges may lead to a decrease in their purchase amounts.

Hi, thanks. I want to follow-up on that line of questioning. So as it relates to products you're shipping to China, I mean, some of your peers have assumed that revenue just goes away; it's not feasible for customers to buy the product. So have you assumed demand destruction and are the surcharges on the terms of like top-line embedded in the guidance as of right now.

Yes. There are two aspects to consider, Brandon. Regarding the surcharges, they are included in the guidance. For the other point, we are focused on maintaining customer continuity and market share. This is strategic as we evaluate the tariff situation, which is quite variable, and determine where and how surcharges should be implemented.

But again, I think Roop alluded to earlier, I mean, products going into China actually come from not just the Americas but from Europe and from Asia, specifically Singapore, so we've got a reasonable amount of mitigation of China tariffs for those products.

That's the question, isn't it, Brandon? We have aimed to take a conservative view on the demand profile and the observed softness. The transition from Q1 to Q2, and between Q2 and Q3 appear relatively flat, with a slight increase expected in Q4. However, there are specific nuances related to QSD, including aspects of its seasonality and some improvements in quality systems revenue. Process Chrom has remained consistent throughout the year. Our goal has been to reduce risk regarding these variables, and over the past year, we've tried to maintain a rational perspective while adopting a careful approach based on market observations. We have collaborated closely with the commercial teams to analyze proposal numbers, win rates, sales cycles, and the ongoing business. The ongoing business has performed as anticipated. On the instrument side, the sales cycle is somewhat extended, although we are pleased to maintain our win rate, which is encouraging. We expect stabilizing trends in the coming months, if not a few quarters, and the team feels optimistic about meeting the current forecasts.

Okay. Last one, Norman, you mentioned the balance sheet optionality and availability of assets and valuations, which is helpful. Update us on your priority or your preference for capital allocation right now. You're buying back a lot of stock, which is great. I mean, would you consider a larger deal perhaps right now that's maybe north of $1 billion, or are you primarily still focused on bolt-ons? Just what are your preferences?

Yes. I think, especially given some of the, what I think of as attractive inorganic opportunities that are bubbling up, I think there is a real appetite for doing something meaningful. Obviously, the right deal is important for us. Especially those larger things to provide scale. We can leverage our kind of global commercial operations, yes, lots of things we could do there, but I think we are focused a little bit on larger things. And yes, we've got plenty of capacity on our balance sheet and could certainly do something in the billion range.

This is Matt on for Tycho. Maybe just to start out on Biopharma Group, I think you talked about kind of softer trends on smaller and mid-sized. Obviously, process chrom up mid-teens in 1Q is good to see, I guess. On process chrom, is there any kind of initial early stocking? You have easy comps there, why wouldn't that trend kind of continue relative to the high single-digit guide? And then in terms of consumables versus instruments within biopharma and maybe more specifically Droplet Digital PCR, has your outlook changed at all for the year in terms of consumables and instruments within that end market? Thanks.

Yes, thanks, Matt. It's great to have you here. Starting with bioprocessing, process chrom was a positive factor for us, which we were pleased to see. Regarding your question about continuity, there wasn't any advance ordering on our part; rather, customer demand led them to request some uptake in Q1 earlier than they typically would have for their manufacturing needs. We anticipate high single-digit growth for the year. The destocking trends have continued to decline and are normalizing as expected, which is encouraging for us. As for consumables and instrumentation, the primary weakness we are experiencing is in instrumentation, which poses the biggest challenge. Consumables have performed relatively well, even with the broader academic and NIH environment, so we are glad about that. However, the softness we have observed is specifically tied to academia and biotech in the instrumentation area.

Okay, thanks. And then just one to clarify, I think you had baked in prior $15 million for the year on the reimbursement dynamics in China. I guess just to clarify, did those kind of play out as expected in 1Q? And any way you can kind of quantify what the reimbursement headwind was to your China business here in the first quarter?

Yes. I think you said it well. It played out just as we expected, nothing different, nothing incremental. And just in terms of that number that you quoted just now the $15 million, you just think of that as a one-quarter value of that has played out effectively.

Okay, thanks. And maybe just one more. Understand you still haven't closed the Stilla deal. It remains on-track for third-quarter, but just any kind of color, update in terms of conversations you've had with customers now that it's been some time since you've announced it, I don't think you give a strategy update here in a few months, but just any feedback or color from your customers since you've kind of announced the deal, maybe excitement levels around that? Any more color to add around the Stilla acquisition? Thank you.

Yes. I think first of all, within our teams, I mentioned that I kind of traveled the globe during the quarter and each of our teams are very excited about the platform and what we can do with our content on that platform, even into the food applied applications. So we remain very excited about it. We haven't been jumping the gun and engaging customers necessarily on certain things, but where it has come kind of across in certain areas, there's very positive feedback. I mean, I was very surprised at the brand awareness that's out there on the platform in various geographies around the globe. So we're bullish. We still have a little ways to go here before we close the deal and can really kind of engage with customers, but overall, there's a lot of excitement. And it's I think that the exciting thing is the ease-of-use and the workflow of that platform is very, very exciting to the marketplace.

Hi, guys. Thanks for taking the questions. Just first on the life science business, can you talk about the dynamics there first on the pull-forward on Process Chrom, was any of that ahead of tariffs or what can you comment on the strength of that and kind of the cadence of that through the year? Maybe we'll start there.

Yes. So Conor, I want to clarify, it wasn't necessarily a pull-forward by us. It's something that was customer demand-driven, right, in terms of...

And we don't think it was tariff.

Got it. Okay. Thanks for that, and then...

The team has basically confirmed their full-year forecast as we submitted, and that's pretty solid. It's a very solid forecast.

Okay, perfect. And then if my math is right, it looks like you've taken about $40 million out of the life science guide, which I think you've said that federally funded academic and government sales is 4% of your sales. So, is that $40 million all coming out of that and kind of are you making the assumption that will be down 40% year-over-year? Or is there anything else baked into the life science cut?

Yes, it really is. You're correct that federally funded and NIH revenue is at 4%. Keep in mind that academia represents a larger portion of our total revenue, roughly around 20%. This is an important factor to consider overall. Additionally, we are seeing continued softness in China from a macroeconomic and situational perspective.

Yes, in the first quarter, as you've probably seen, Conor, there was a four, five, six-week period of time there in February into March where there were almost no grants approved or renewed. So it's pretty dramatic impact there. We won't see that probably until a number of quarters from now and it may be a little more dramatic in the first quarter than we're going to see the rest of the year, but there's certainly softness and concern by our customers.

Yes. I mean, hopefully, that cautiousness will ease as we progress through the year. We are still awaiting Congress's input regarding the NIH moving forward, so we will have to see how that unfolds.

Well, I mean, again, let's keep in mind, right, I think it's the macro from a DX standpoint on activity levels is one aspect of it. China is another aspect of it, and China may be the more significant aspect of it, right? And so those are the pieces. And just knock on wood, we haven't seen any further reimbursement rate changes or anything like that. VBP hasn't been anything to note for us. And so it really is just the macro-dynamics and softness.

And our last question comes from the line of Jack Meehan with Nephron Research. Your line is open.

Thank you. Good afternoon, everyone. I wanted to follow up on the tariff assumptions. This 130 basis points margin impact translates to about $30 million to EBIT. First, I’d like to confirm if this is a three-quarter impact you're expecting for the reciprocal tariffs. Are you anticipating any revenue impact, or is it solely related to the increased costs on exports for those products?

Yes. So it really depends on which tariffs are in place. So it's respective due to the tariffs in play. Obviously, there are certain tariffs that have pause right now, some are in effect already. So that's what's contemplated in terms of that guide. What we also determined is the surcharges as a net effect of that within that overall guide.

A significant part of our diagnostic business in China involves quality systems, and we are currently trying to clarify whether these will be exempt from tariffs. This appears to be positive news for us. I do not have the specific numbers related to this.

Yes. If you consider China overall for us, there was a negative impact that was in the mid-single digits to the mid-to-high single digits range, which was not what we had anticipated. Additionally, it became increasingly challenging as we progressed through the quarter, and that's an important point to keep in mind.

Got it. Okay. And then just the last one, the free cash flow update was a bright spot kind of maintaining that forecast despite the lower op margin. Can you just talk about like some of the levers you're pulling as a working capital, just what else you're looking at to deliver on free cash flow?

Yes, it really is the working capital. I mean, we continue to focus on inventory and inventory management. Obviously, with the forecast changes, we're running that through the system, looking at what else we can do in-region in terms of the timing of those. The other aspect is looking at supplier management as well as our DSO in terms of opportunities for improvement there. So we have specific initiatives on all of those fronts that we're in, and it gives us confidence to still stand behind the free cash flow range that we provided.

Thank you for joining today's call. We'll be participating at the RBC Global Healthcare Conference in New York later this month, and we'll also be back out in New York in early June for the Jefferies Global Healthcare Conference. As always, we appreciate your interest and we look forward to connecting soon. Bye-bye.

Ladies and gentlemen, this concludes today's conference call. Thank you all for joining, and you may now disconnect.