Neogen Corporation (NASDAQ:NEOG) Q3 2023 Earnings Call Transcript

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You’re going to see that too on this side of the business. So we’re really excited about our Corvium acquisition. It will allow us to not only stay in front, but 10x be in front of our competitors around this part of the marketplace that really is just a big white space. And we’re excited. We’ve got so much — we’ve got so much data within the organization, we’re not even sure yet of the value streams to provide, which is why we’re working with one of the largest generative AI companies to work with us to figure out what do we have and what can we make actionable. So those are things that are really exciting about what’s coming.

David Westenberg : Thank you guys. And thank you for putting up with my inability to ask a question this morning.

John Adent: No problem. We know you got other things on your mind. So we hope that goes well.

David Westenberg : Thank you.

Operator: Thank you. And our next question is a follow-up from Brandon Vasquez of William Blair. Please go ahead.

Brandon Vasquez: Hey, thanks for taking the follow-up. Just one last quick one on Petrifilm. Are you guys able to quantify the backlog of Petrifilm sales in the quarter? And then second one there is just you said things have improved in January and February in terms of output. Is that — we’re basically done with March now, is that true of March as well, just so we can get an understanding of the cadence going forward? Thanks.

John Adent: Yeah. So I think the backlog number was

Dave Naemura: About $7 million, I think. We’re just about flat and Brandon, the challenge is a little bit less the absolute backlog number, but the fact that we’re still in this allocation situation. So as John pointed out, we don’t lose a customer, but we lose some sales. I think production, absolute production was lower in December than January in February. And we saw an uptick, which was good. I think we again have seen some improvement to the backlog number here in the March timeframe. But again, we’ve seen periods like that. We’ve seen periods like that before. I think John alluded to that. And it’s about the sustainability here. So at the end of the day we’ve got to work through getting continuity of supply for this high replenishment product that’s what’s really going to do it.

So the key is to get the backlog down to a sub-million dollar type number on a sustained basis, which is a better sign that we’re fulfilling at the rate we need to for the requirements of this product category.

Brandon Vasquez: Got it. Super helpful. Thanks a lot.

Dave Naemura: Thank you.

John Adent: Thank you.

Operator: And ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the conference back over to the management team for any final remarks.

John Adent: Thank you all. Really appreciate you joining us this morning. And again, as we work through this, we’re really excited about the future of this business. So we look forward to speaking to you all again in our fourth quarter and end of the year this summer.

Operator: Thank you, sir. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.

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