Greetings, and welcome to the Brooks Automation Q3 2021 Financial Results. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this conference is being recorded Thursday, August 5, 2021. I will now turn the conference over to Sarah Silverman, Director of Investor Relations.
Thank you, operator, and good afternoon to everyone on the line today. We would like to welcome you to our earnings conference call for the Q3 of fiscal year 2021. Our Q3 earnings press release was issued after the close of the market today and is available on our Investor Relations website located at brooks. Investorroom.com, in addition to the supplementary PowerPoint slides that will be used during the prepared remarks today. I would like to remind everyone that during the course of the call, we will be making a number of forward looking statements within the meaning of the Private Litigation Securities Act of 1995.
There are many factors that may cause actual financial results or other events to differ from those identified in such forward looking statements. I would refer you to the section of our earnings release titled Safe Harbor Statement, The Safe Harbor slide on the aforementioned PowerPoint presentation on our website and our various filings with the SEC, including our annual reports on Form 10 ks and our quarterly reports on Form 10 Q. We make no obligation to update these statements should future financial data or events that differ from the forward looking statements presented today. We may refer to a number of non GAAP financial measures, which are used in addition to and in conjunction with results presented in accordance with GAAP. We believe the non GAAP measures provide an additional way of viewing aspects of our operations and performance, But when considered with GAAP financial results and the reconciliation of GAAP measures, they provide an even more complete understanding of the Brooks business.
Non GAAP measures should not be relied upon to the exclusion of the GAAP measures themselves. On the call with me today is our President and Chief Executive Officer, Steve Schwartz and our Executive Vice President and Chief Financial Officer, Linden Robertson, we will open the call with remarks from Steve on highlights of the Q3. Then Linden will provide a more detailed look into our financial results and our outlook for the 4th fiscal quarter of 2021. We will then take your questions at the end of the prepared remarks. With that, I would like to turn the call over to our CEO, Steve Schwartz.
Thank you, Sarah, and good afternoon, everyone. Thank you for joining us today as we report on the results of another strong quarter from both Life Sciences and Semiconductor Automation Businesses. Revenue was $315,000,000 up 10% sequentially and 43% year over year with almost identical organic growth rates from each of the businesses and consistent with the rapid growth trajectory that we've been on for some time. This persistent trend of revenue and profitability expansion is the direct result of our targeted investments in the science and technology to satisfy the needs of our customers, especially in what's a robust demand environment for life sciences and semiconductor. And as we approach the separation of the businesses, we continue to invest to position ourselves in front of customer needs and market opportunity.
We believe that both life sciences and semiconductor automation markets will continue to expand and evolve for years to come, and we intend to lead with our solutions. That requires sustained investments in new product and new technology development as well as acquisitions. Investments that we are making and for which we're being rewarded by our customers who are not only adopting our solutions, but also who are guiding our next development initiatives.
Although there's
a lot to be enthusiastic about, I'll just touch on some highlights from the quarter, starting with Life Sciences. Overall, Life Sciences revenue was up 42% organically year over year, And we added more than 300 customers, a reinforcement that not only are our offerings attractive, but also paving the foundation for more future growth as our business increases at these new accounts. In Life Science Services, revenue was $80,000,000 up 28% year over year with growth delivered from each of the sub segments. We once again delivered record revenue quarters in each of our 3 major sub segments of Genomic Services, NGS, Synthesis and Sanger sequencing. Next generation sequencing was up nearly 60% year over year.
This service offering continues to grow as a result of our highly skilled NGS case teams, which engage customers early in the experimental design and follow through from there to data. In the quarter, we launched a full complement of capabilities of NGS solutions for gene therapy applications, and this capability has already attracted 20 biopharma and biotech customers in the U. S. Alone. The synthesis business delivered another solid growth quarter, up 33% from Q3 last year.
This steady and significant growth comes from pharma and biotech customers. We continue to build out capacity to stay in front of what we see as a sustained healthy demand environment. The Sanger business came in at $15,000,000 up 72% against a weak Q3 2020, but it was another all time record and quite meaningfully, up 10% sequentially, which is a particularly strong sequential growth indicator compared to what was also a record prior quarter. In the Sample and Repository Solutions portion of our services business, We maintained our growth momentum and were particularly pleased with the number of commercial wins that landed late in the quarter, each of which will contribute meaningfully to more growth in the second half of the calendar year. We were granted the certificate of occupancy for our Cleveland Clinic biorepository and our sample management contract initiated last month.
All of us are delighted to have this up and running and the benefits to us and the Cleveland Clinic have already begun. We were awarded a contract for the management of as part of a federal government program that will run for many years. This is not a COVID-nineteen project, but rather one that takes advantage of our ability to manage vaccines and manufactured product, something that we've proven over the past year to be a strong capability. In addition, we won another sample management contract to manage millions of samples for another large global pharmaceutical company. Our personnel are already on-site beginning the curation of samples for the customer.
This activity will be in full swing by the end of the current quarter and sample relocation from the customer sites to our biorepositories And finally, in the quarter, we took in another 1,000,000 sample tranche from the large pharma company we had mentioned on our previous call. Our momentum continues to build and we are seeing more momentum behind the outsourcing of these large and valuable collections of samples, which are only increasing in value to our customers, but have become unwieldy because of the size and complexity, a perfect spot for us to apply our core skills to sustain and add value to these collections. In the Life Sciences Products segment, business remains robust. Revenue was up 60% year over year, but down modestly from Q2 as we experienced some decrease in consumables revenue quarter to quarter as COVID testing has slowed. As we've mentioned to you, the COVID related demand has a tailwind for Life Sciences products, but it's also been difficult to predict.
We still maintain that the boost to our consumable instruments This will net out to be a positive long term impact. The acceleration of automation and laboratory workflows as well as a worldwide shortage of consumables and instruments That was driven by high volume testing was a catalyst for us to have many new customers, customers we believe we can maintain post COVID. We believe our premise still holds that even in this environment, our long term position has strengthened because in the quarter, we added more than 50 new consumables and instruments customers, And thus far, we've retained more than 80% of new COVID customers who continue to buy from us even as the availability of supply of consumables has improved worldwide. We'll continue to monitor this closely, but we believe that our service levels and quality of product will be the reasons these customers will remain. In stores, we saw strong momentum across the product lines, including large automated stores, cryogenic stores And clinical stores, we saw strong demand for our BioStor Cryo Systems, continuing the pattern of adoption of this critical technology for use in cell and gene therapy.
To date, 38 different customers have now purchased multiple BioStor 3 cryo units and we're beginning to feel the momentum building for this innovative and enabling technology. Q3 was another period of validation that our products business is exactly on target for the life sciences sample management market requirements. We'll remain vigilant as to the vagaries of the COVID-nineteen related market segment, but we're pushing forward with full confidence that our products are necessary in enabling across the life sciences field and not simply a COVID phenomenon. As a life sciences company, we're at a meaningful juncture as we take the next step We're ready to not only stand as an independent company, but a company capable to grow and invest to meet the needs of a market and customer base that needs us to grow. Specifically, across our services portfolio, we're landing larger commitments from larger customers.
This is not only a testament to the capability we've proven over the years to be a dependable supplier of extremely high quality services, but also the fact that we've earned the right to be able to serve large volume needs of the world's most demanding pharma and biopharma companies. In our Life Science Products segment, we've always had high market share of automated stores at large customers. But now because of the rapid increase in cell and gene therapy applications, our innovative cryogenic product offerings are quickly gaining traction with companies that incorporate our solutions into their designated workflows and securely embed them into their standard operating procedures. This is a critical role for which you are now completely ready. We're proving ourselves to be up to these responsibilities and challenges, and we're making the most of this position.
We're energized by the feeling that we are in the earliest days of I'll now move to the semiconductor business where we delivered another record quarter with revenue of $186,000,000 up 43% organically from 1 year ago and 47% overall, including a contribution from Precise Automation, which we acquired partway into the quarter. Overall, the semiconductor market continues to be robust with bullish near term and medium range projections. This demand goes far beyond making up for a chip shortage in the automotive space, but is driven by myriad new applications that are driving a new level of demand They will not be completely satisfied by a 1 year boost of capacity, but rather will be met both by the acceleration of new capacity at the leading edge And by capacity additions and existing and mature technology nodes, there are numerous positive indicators of a healthy semiconductor environment.
Each of the
top 3 capital spending chip companies have declared extraordinarily high levels of capital expansion over multiple years. We had another standout bookings quarter with $250,000,000 in new orders. Demand forecasts Continue to remain solid with the larger OEMs scrutinizing their supply chains for the ability to ramp for the foreseeable future. And we foresee more continued expansion in the memory market, including DRAM, which will add even more growth to this environment. And although the market is very strong, we will continue to extend our leadership position by aggressively investing in the future.
Our market presence and penetration continue at a torrid pace, supported by our high level of design activity, aggressive hiring across engineering and technology areas, as well as significant additions to our manufacturing capacity. In In the quarter, we had another 50 design wins, equivalent to the elevated pace we experienced in Q2, expanding our footprint not only with existing customers, with new customers as well. This accelerated demand for front end semiconductor capital equipment combined with our significant market position Included in this number is the contribution from wafer handling robots, products sold directly to equipment OEMs, which was up 73% year over year, A validation of our continued share gains with OEMs and the contamination control solutions business continues to strengthen. Revenue at $51,000,000 was up 36% sequentially and 46% year over year, further emphasizing the pervasiveness of this technology, which has truly become a necessary capability in all manner of semiconductor manufacturing. It's important to note that this has also not plateaued in terms of adoption, As in Q3, we added 13 new design wins in the quarter and 5 of those design wins were for new customers.
And finally, we are rapidly assimilating the precise automation team and getting ramped on the promise for this exciting new growth vector. We've already doubled the size of the technical team to allow us to more quickly realize some of the ambitions for multi market applications that take advantage of collaborative robot capability in high value added systems. And we've begun to bring the precise robot manufacturing in house, leveraging our operational capability while alleviating some of the manufacturing bottlenecks they had experienced. Before we wrap up, I want to take a moment to comment on the current supply chain dynamics as we see them. You've been hearing a lot about challenges in the supply chain, which are expected to continue for the foreseeable future.
To date, our strong partnership with Continue to apply our risk mitigation strategies with a heightened focus on delivering for our customers. We remain diligent as the supply chain environment is dynamic and our ability to largely mitigate these headwinds could be impacted. Overall, the semiconductor automation market remains strong and vibrant. By all of our indicators, we are strengthening our position and advancing our technologies to be in front of what is necessary for the continued expansion of this market. Our relationships with our customers are closer and more interdependent, which leads to a shared endpoint and unprecedented collaboration and trust.
We are keen to expand our methods, business model and our technical expertise into other market sectors that will benefit from the same types of engagement and innovation in the collaborative workflow space, and you'll hear more about this in the near future. To conclude, our strategic direction for each of the businesses is Our investments are consistent with these roadmaps, our profitability continues to outpace our revenue growth, and our balance sheet is clean and healthy. All of these elements make us confident in each of the businesses and our ability to allow each to stand as independent companies. I want to thank all of the Brooks employees whose hard work makes all of this possible. The entire team is working full steam ahead to complete the separation, which we continue to expect to be complete by the end of the calendar year.
And we thank you for your continued interest and support of Brooks, and we hope to maintain your trust and interest in the next configuration of this powerful capability. I'll now turn the call over to Lindon.
Thank you, Steve. I now refer you back to the slide deck available on our website. Turning to Slide 3. I want to reiterate for everyone that we will continue to reflect the total company results as you are accustomed to seeing them until the separation culminates, which we still expect to occur by the end of the calendar year. The 3rd quarter was another record quarter for us on the top and bottom line with revenue of 315,000,000 at 43% year over year growth and non GAAP earnings per share of $0.72 Both sides of the business Continue to show strong growth and profitability.
Cash flow from operations was $45,000,000 in the quarter and $175,000,000 over the past 12 months. And on a trailing 12 month basis, we are now at $1,100,000,000 $2.27 of non GAAP earnings per share. Moving on to Slide 4, let's get into the details. Revenue was up 10% sequentially and 43% year over year, resulting in GAAP earnings per share from continuing operations of $0.53 up $0.34 year over year and up $0.20 quarter over quarter. Operating margins were up 5.30 basis points sequentially.
The gross margin of 45.8% shows 140 basis point improvement. Recall, in the prior quarter, we recognized a $5,000,000 increased liability for tariffs due to a Change in estimate for the value of past intercompany imports. In the operating expense section, SG and A was down quarter over quarter, primarily due to a lower spending with advisors and legal support in the preparation for the separation of the company. This spending remains at $6,000,000 in this 3rd fiscal quarter. All in, the GAAP earnings per share was $0.53 for the quarter, up 184% year over year.
Let's look to the right side for the non GAAP results. Gross margins were 46.9%, expanding 3.40 basis points year over year, driven by Life Sciences, up 5.40 basis points and semi up 200 basis points year over year. The revenue growth and gross margin expansion drove operating income upward 127 Operating margin was 21.5%, up 7.90 basis points year over year and adjusted EBITDA margin was 24.8%, up 6.50 basis points. Below operating income, the non GAAP tax rate in the quarter was 18.9%. When you combine it all, we saw 127% growth in the non GAAP earnings per share, demonstrating the profit leverage and strength in the business model underlying both businesses.
Now please turn to Page 5 for the results in our Life Sciences business. In the Q3, our life sciences business generated revenue of 129,000,000, an increase of 38% year over year and flat on a sequential basis. The COVID related revenue in this quarter was again primarily in the products business, which delivered an estimated $9,000,000 of COVID related orders in consumables and instruments. This was approximately $5,000,000 less than the 2nd quarter. The total Life Science business offset this softness with sequential expansion in the Services segment and with strength in store systems within the Products business.
The products business in total was 49,000,000 and grew a meaningful 60% year over year. The increase was driven with 67% growth in consumables and instruments and strong growth across the other product areas. As mentioned, the C and I business continued to see the benefit from COVID related demand, but at a lower level as compared to the Q2. We continue to see COVID related research orders, but fewer orders for tubes used in COVID testing. Except for the softer COVID related demand in consumables The products business expanded sequentially with strengthened systems.
The total products revenue, excluding the benefit of COVID revenue this quarter, providing 30% year over year growth. The life science services revenue was $80,000,000 which was growth of 4% sequentially, and when The impact of unwinding the alliance grew 43% year over year. This business is comprised of our GENEWIZ Genomic Services business The Genomic Services business grew 56% year over year an accelerated 7% quarter over quarter. Q3 of last year was our most severely impacted quarter from COVID for the GENEWIZ business, primarily in the Sanger business. Excluding our estimates of last year's COVID impact, the business still grew an impressive 26%.
Growth was driven by NGS and Synthesis as well as strength in Sanger and our other services business. Excluding the Alliance revenue stream, Sample Repository Solutions also reported strong growth of 21% year over year. The growth was primarily due to sample storage and logistics. Moving on to gross margin, Total of life sciences was 50% for the quarter, up 5.40 basis points year over year. Approximately half of this Gross margin is driven by performance improvements in the current business operations and approximately half was driven by the exit of the lower margin Alliance contract with our UCDR in the Q4 of 2020.
The Life Sciences Products business gross margin was 47.5%, A 300 basis point improvement year over year, driven primarily by the strength in volume of our consumables and instruments And margin improvement in our automated cryo stores business. The Life Sciences Services business provided 51.5% gross margin in the quarter, Of 6.80 basis points year over year, approximately 250 basis points of this improvement was driven by the performance of our current business streams and the remaining 4.30 basis points driven by the exit of the Alliance contract. In total, the Q3 Operating margin of 17.8 percent expanded 10.7 percentage points over last year's results. On the last 12 month basis, Adjusted EBITDA margin climbed to 24%. As we look into our Q4 of 2021, We expect Life Sciences revenue to be in the range of $127,000,000 to $137,000,000 This range supports Approximately 17% to 27% growth year over year.
Let's turn to the Semiconductor business on Slide 6. Semiconductor Solutions revenue of $186,000,000 in the quarter increased 47% compared to the Q3 of 2020 and was up 19% sequentially with strong performance across the portfolio. Automation products grew 47% year over year. Precise Automation, our new collaborative automation product line acquired in April, provided $3,000,000 of this revenue. Excluding this revenue from Precise Automation, the segment growth was 43%.
While all areas of the Automation Product Group provided strong growth, The group was led by vacuum automation, including robots and systems, with 71% growth year over year. Revenue in our Contamination Control Solutions business increased to a record $51,000,000 in the quarter and an impressive 46% year over year performance and was up $13,000,000 or 36% sequentially. The strength in the business was supported with high year over year growth in both of the product sets, wafer carrier cleaners and reticle stockers. This business has produced $150,000,000 in revenue on a trailing 12 month basis. Conductor operating margins were 24.1%, up 560 basis points year over year and up 280 basis points sequentially.
Gross margins were strong at 44.7%, up 200 basis points year over year and up 30 basis points sequentially driven by leverage and cost improvement across all business lines. The Precise Automation product line provided modest accretion to the gross margin line, with gross margins higher than our average gross margin. I can also confirm Precise Automation was accretive to bottom line earnings on a GAAP and non GAAP basis in the The last 12 month metrics on the right show strong comparative performance and significant profit leverage with 29% top line growth and 70% adjusted EBITDA growth. The momentum in the business also becomes clear as you can The current quarter run rate exceeds $700,000,000 on an annual basis and continues to drive a higher accumulated adjusted EBITDA margin. As we look toward our 4th and final fiscal quarter of 2021, we expect semiconductor revenue to be in the range $201,000,000 to $211,000,000 This guidance reflects another expansion of $15,000,000 to $25,000,000 sequentially and supports year over year growth of 46% to 53%.
Let's turn over to Slide 7 for the summary of cash flow for the quarter. Operating cash flow in the Q3 was $45,000,000 Over the past year, we have generated operating cash flow of $175,000,000 Capital expenditures for this quarter totaled $9,000,000 including $2,000,000 for the GENEWIZ China Building Project. As an update to the building project, the COVID environment has caused logistical delays at various times across the past year and have accumulated now to a point to shift our estimated completion date to the 1st calendar quarter of 2022 and to be transitioned operationally by June of After providing $7,000,000 of dividends back to shareholders in the quarter, we closed with $286,000,000 of total cash, including approximately $50,000,000 of debt and $236,000,000 of net cash. Let's turn over to Slide 8 for a quick view of the balance sheet. As just noted, at the end of the Q3, we had $286,000,000 of cash, restricted cash and marketable securities.
We added $83,000,000 to goodwill and intangibles in the quarter driven by M and A. It is notable that inventory increased 27,000,000 and payables $20,000,000 with it. Like many, we have made aggressive moves to secure inventory where we are foreseeing long lead times Shortages to support our ability to meet continued growing demand for our products and services. Our supply chain management has a sharp competitive edge and manage this well for us with a variety of thoughtful actions. With debt stable at $50,000,000 we finished the quarter with $236,000,000 of net cash.
Let's turn to slide 9 for our guidance on the 4th fiscal quarter of 2021. Revenue is expected to be in the range of $328,000,000 to $348,000,000 with a year to year growth in the 33% to 41% range. Semiconductor revenue expected to range between $201,000,000 to $211,000,000 and life sciences revenue is expected to be $127,000,000 to 137,000,000 Adjusted EBITDA is anticipated to be $79,000,000 to $89,000,000 Non GAAP earnings per share is expected to be $0.71 to $0.81 per share and the GAAP earnings per share is expected to be $0.50 to $0.60 For the full year, we expect capital expenditures of approximately $60,000,000 and our non GAAP tax rate to be in the range of 20% to 22%. Finally, as an update, We continue to make progress in our work to separate into 2 independent companies. All functions in our business are working toward this objective and all plans are on track to complete the separation by the end of the calendar year.
As you can see from the performance picture, both businesses are performing with high growth and have significant profit leverage as the top line progresses. Each business will launch with strong balance sheet supporting ample capacity to pursue their additional growth vectors. When we have a more clear line of sight to the separation date, We will announce at Investor Day event. This concludes our prepared remarks. I will now turn the call back over to the operator to take your questions.
First question is from David Saxon with Needham. Please go ahead.
Yes. Hi, Steve and Linton. Thanks so much for taking the questions and congrats on the quarter. I guess I'll Start with the life sciences business. I mean, a question I get a lot is just around this COVID driven demand, particularly in the products category and kind of how quickly and how much that tails off.
So I know it's probably a hard question to answer, but can you just talk through about how you're thinking about that? And then relative to the 4th Quarter guidance, total life science could be down. Is that kind of more about This COVID related demand falling off quicker than maybe what you're seeing currently? And then I have a follow-up.
Okay. Yes. Hi, David, it's Steve. So thanks for the question. I think you had it right in terms of the dynamic that took place between Q2 and Q3.
We had approximately $5,000,000 out of 14 that was COVID consumables and instruments related, and it's really tough for us from a visibility standpoint, but in all other aspects of the business, we saw growth. We saw it in all of the services portions of the business and On the remainder of the product side, so from that standpoint, also the guide that we have going forward, if there's anything that's down Quarter on quarter, if we did come in at the lower end, it'd be related to the consumables and instruments because we think we have pretty good beat on Everything else, and it would certainly be because of COVID demand. But business feels healthy, all the services, all the other portions of the product line continue to grow. We're really pleased by that. And yes, I think you can sense from us a little bit of uncertainty, nothing that we can envision, But just the fact that we went through that from Q2 to Q3, I think it's good just to be a little bit cautious there.
But we anticipate at this moment sustaining kind of the levels that we have right now for the consumables and instruments quarter to quarter.
Okay. That's helpful. And then I guess my second question is just on CCS. I It's really nice to see that kind of return to growth. I think last quarter you kind of called out $45,000,000 as fee.
So Just wondering kind of what's driving that demand and should we kind of expect sequential growth in that category?
Sure. So the CCS business is as healthy as you said. We have enough Capacity that when customers need us to accelerate something, we've been able to satisfy that. And at this moment, yes, we anticipate sequential growth in the Q4 in the CCS business.
Great. Thank you. Next question is from Paul Knight with KeyBanc Capital Markets. Please go ahead.
Hey, guys. Mike on for Paul. How are you?
Hey, Mike.
Good to see you.
Just a Quick question on the GENEWIZ China delay. I mean, where are you guys at with capacity now at GENEWIZ? And the delay till 2022, does that No impact growth at all looking forward into 2022. I know I'm trying to get guidance on 2022, but just your thoughts on the delay of the GENEWIZ facility.
No, it's really manageable for us. As we've described, the current lease buildings Are of good size and we've gained productivity. So we of course, we manage with some buffer in these things And we have the flexible leasing partners that we've dealt with there and been able to extend those sites. So we're equally excited as we always have been in terms of what the project looks like. I'll share with you that we're Moving into the fit up stages here, and we see what the outside of the building is looking like from the Street View, everything is looking good.
I think the employees in the company, they are getting very excited about what But the COVID issues are real in the environment there and we've had periods Just delays, early on it was a little bit about labor moving from one province to another or being able to sustain people on-site. We had that cushion We've had other delays, sometimes on materials. And just as it accumulated, it moved from the final calendar Quarter completion and move into 1st calendar quarter completion and the move in will occur between then and the month of And I think we're in really solid shape operationally, so we're not concerned about constraints.
And Steve, just on the vaccine contract with the federal government, can you kind of unpack that a little bit more? I mean, I know you did some work with Catalent helping Moderna for their Seeing storage and logistics, but maybe a little bit deeper, is this a new opportunity for you guys to kind of expand this into also a commercial customer base as well?
Yes, it is. It's different from COVID, certainly unrelated, and it's something that's been in motion for quite some time. We have the ability to manage the logistics and the care of vaccines that need to be called and then ultimately get them distributed. This happens to be for reservists. So it's a pretty significant program.
It will run a long time. And it's got just the kind of complexity and care that we're prepared for and we've been geared up for this for quite some time.
Great. Thanks for the time, guys. You bet, Mike.
Next question is from Patrick Ho with Stifel. Please go ahead.
Thank you very much. Steve, maybe first on the semiconductor side of things. Based on your results and your outlook, it looks like you managed the industry supply constraints very well. One, maybe if you can just qualitatively give a little more color on the situation for you guys, because I'm sure you're experiencing some challenges. And then maybe secondly, what are you doing on year end to mitigate the situation as best as possible?
Because during this earnings season, we've seen mixed results In terms of some companies managing it well and some companies, I guess, poorly managing it, so I'm just trying to get a little bit of color on your end, given the strong results and outlook.
Yes. Thanks, Patrick. So Patrick, a few things. There are always supply issues even in any environment, but they're particularly acute now as you're aware and everybody in this industry is aware. Very specifically, when you have thousands of parts, any one can hold up A manufacturing line.
But I think the team's done a great job, and they're geared for it In terms of managing the environment, getting out in front of supply uses that we could anticipate and doing supplier checks about both their Capacity and their capability, we have some that are volume related and some that are related to their ability to operate in a COVID environment, But I think the team has done an exceptional job, and I'll give you a couple of examples. Sometimes when a facility is not Capable to provide a part or a sub assembly, our teams have gone to qualify additional vendors. And this isn't That happened over the past quarter. So we're usually quite a bit out in front of it, and We've been conveying large demand to our suppliers for some time now, anticipating that the Volume ramp was going to be significant. And I think we got that part right and we've geared our suppliers up for it.
On the chip shortage, those exist too. And As an example, when we talk about the relationship we have with our customers and with our suppliers, we've had to Go to alternate sources of chips, if you will, redesign boards to get an equivalent functionality, and that's not something That is done lightly, but when we work with the supplier and we go to the customer who are they're also acutely aware of the situation, They trust the design engineers. They validate the capability that we've brought. And we've had instances now where we've overcome some of the chip shortages with by re And doing that kind of design work. So if we didn't have the relationship with the customers who could entrust the engineering teams, likely they
would have been reluctant to switch on some of
the sub assemblies and sub to switch on some of the sub assemblies and sub components, bearings and things like that, and some of the electronics design, But I think they've helped us to navigate that. Our teams have jumped on it, and we've been ready. That doesn't mean that we couldn't bump into something, But anything that we could imagine or anything that we can see, I think we've been out in front of, and I guarantee there's no resting here. So we're Sensitive about anything that might happen, but I give the supply chain team a lot of credit. And I think Everybody went up on high alert in the earliest days of COVID.
I think as you remember, we just never let up from March of 2020 to today. So We're on it. We're uncomfortable about it, but we're really sensitive to the kinds of things that ought to be done. I think we're managing it really well.
Great. That's really helpful. And as my follow-up question, I apologize I missed some of your initial remarks on the life sciences business. But given a lot of the fluidity and the moving parts right now with the whole environment, can you characterize Maybe a hiccup near term on COVID related type of business or are Some of your traditional kind of research and analysis business coming back, both on the products and services side.
Yes, sure, Patrick. So on the services side, the researchers who moved The focus of our activity toward COVID continued to use us. So we really believe that the shift Toward COVID, toward the treatment, toward the vaccine, and as researchers go back to their other activity, we think that business will sustain and we've seen it It's just in the steady growth of the services business, and so we feel pretty confident that's the situation. If you weren't on for some of the comments, we did have a $5,000,000 reduction In some of the consumables and instruments related to COVID, particularly on the consumable side from Q2 to Q3. And the services business propped it up.
The rest of the products business has continued their momentum, but we did Take about a $5,000,000 reduction quarter on quarter sequentially as a result of COVID consumables.
Patrick, I'll add. We I'll provide a couple of data points and I think everybody is probably interested in these, so I'll just reiterate them. If you think about the impacts in 2020 versus 2021, 2020, we were dealing More with the impact of customers being absent and the lockdown. And what we shared was that in this quarter, when you look back at last year, GENEWIZ had a little easier compare This year, they are on a nice ramp this year sequentially and year over year, but the significant growth, if I was to Take the impact that we discussed last year out of the quarter, in other words, raise the number last year without any COVID Downside last year, we estimated business grew about 26%. And so we're really Pleased with the trajectory and the continued build on the customer base this year.
And we highlighted earlier that Sanger is at another record level and is showing 10% growth. So it's really solid. On the product side, as Steve alluded, that Slow down in consumables still has about $9,000,000 of what we see as COVID demand in this quarter that we delivered. And if you take that out, that total products business still grew about 30% year over year. So again, We're seeing really strong growth on both sides.
If you try to normalize what was hurting us last year, what was benefiting us this year, and those are the 2 primary. We had other Puts and takes, as someone referenced, we are doing some vaccine management, but those are more modest impacts around the business edges. But the most severe was the lack of some of the academics and customers in place last year at this time And then this year, the positives on the product side. So those are the 2 biggest normalizing factors.
Great. Thank you very much again.
Next question is from Jacob Johnson with Stephens. Your line is open.
Hey, thanks. Good afternoon, everybody. Just to start off and sticking with kind of the COVID questioning. Linden, on the $127,000,000 to $137,000,000 of Life Sciences revenues you're guiding to in the Q4, should we expect the composition of The Q4 to kind of look like the Q3, meaning strength in GENEWIZ and SRS and maybe a little bit weaker life sciences products, Revenues in the 4th quarter, and if you can or want to, can you just talk about Kind of the COVID assumptions that are embedded in the 4th quarter guidance.
Yes. And not to Timmy down on line by line guidance here, but I'll give you that color. We see momentum on both products And services that could support expansion on both products and services at the midpoint and up to the upper end. And, but on the downside, if we're not expanding and I want to emphasize midpoint showing expansion sequentially and significant growth year over year, right, in the entire range. But if we're at the lower end, it just it probably accounts for a little bit of softness in the consumables.
Again, we're uncertain on that. And I keep a little cushion in there because as everybody recognizes, certain geographies Are facing COVID spikes currently and sometimes that constrains us from accomplishing certain projects with customer installs and things. But both products as well as services has potential to be expanding on a sequential basis. And That's connected to demand that we expect if we're not fulfilling it in this quarter, we're fulfilling it eventually. So it's strength for us.
Got it. Super helpful. Thanks And then for Steve or Linden, just on the SRS side, you had a large pharma win earlier this year. It sounds like you Couple more wins this quarter. So when you think about the growth of the SRS business, is it being driven more by growing samples under management?
Or are you also finding ways to kind of increase your revenue per sample, I guess thinking about things like the synergies with GENEWIZ?
Yes. Right now, Jacob, it's both. So mostly what you see right now is mostly samples under management, getting them registered and increasing the size of the collection. But at the same time, the synergies are beginning to develop, but it's still small compared to the growth in the samples. But the right kinds initiatives are in place, and I think the sales teams and the customers are really beginning to understand it.
But it's modest yet, but the right things are happening.
Got it. Thanks, Steve. Thanks for taking the questions.
You bet, Jake.
Next question is from Amanda Scarnati with Citi. Please go ahead.
Hi, good afternoon. The first question I have is on The non COVID related business with your consumable instruments companies, you mentioned that some of your COVID related customers have been purchasing more even though the supply chain is loosening up. Are they starting to purchase non COVID related products Or is it still really just in that COVID footprint?
Yes, I'll comment. One of the colors that we added to this is we added 50 Customers in the quarter, in the consumable space. So we also continue to Deliver to some of those customers on other opportunities aside from COVID. So when there is supply shortfalls, you're able to delight Some customers will supply, and they get the first experience with you and they like it. So we do have Retention efforts with those customers, what we do see is some of the COVID demand itself has come down.
But Amanda, let me know if I addressed your question, but we're seeing our opportunities here and now, and our ability to meet these demands and be a reliable But I think we've done a good job with that, and we see opportunities present themselves.
Amanda, this is Steve. I'll put one more thing on top. The thing we are seeing is that, as we mentioned, as lines become more automated, the instruments, the automation instruments are staying at a relatively elevated level compared to where we were pre COVID. So even if some of the consumables are down, when lines are being constructed for any lab It seems that the instruments business continues to stay at a very healthy level.
Great. Thank you. And then just on the semiconductor side, can you just talk a little bit a little finer point on sort of your supply side of things. Are you able to shift to full demand at this point? Are you seeing any issues in meeting demand or any
Right now, we're meeting all the customer demand, and we're in regular conversations because they want to know, are So I won't tell you that it's Matt, I won't tell you that it's easy. It's been quite a ramp, but we've been way ahead of the Hiring and training, we manage the supply base, I think particularly well. If we had more free flowing parts, we could probably continue to build a little bit more. But right now, We're on a really good path satisfying customers. It hasn't been easy for sure, but we think we have the supply chain managed And certainly, we have the capacity to meet the ramp that's coming and we're trained and ready and facilities have been rearranged.
And we continue to see really strong demand and we believe we're prepared to meet it.
Thank you.
We have nothing further from the phones. I'll turn it back to our presenters.
All right. We appreciate everyone's attention and support. These are High momentum days for us, where the team around the world has been really responsive to Our needs and our customers have been responding to our ability and capabilities of the business, which we couldn't be more proud of. But we really appreciate the investor table here, and the attention and support you all provide. We look forward delivering on the 4th fiscal quarter, which is the end of our fiscal year, September 30.
And we will also keep The separation of the company, which we're very excited about launching 2 strong companies, the semiconductor, the automation company, and also,
That does conclude our call for today. We thank everyone for participating and you may now disconnect.