Harvard Bioscience(HBIO)

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Harvard Bioscience(HBIO) - 2022 Q2 - Earnings Call Transcript
2022-08-07 14:52
Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $29 million, flat compared to Q2 2021, with a 17% growth in Cellular and Molecular offset by a 9% decline in preclinical revenue [9][10] - Adjusted operating margin was 11%, down from 15% in the previous year, impacted by order delays, inflation, and increased R&D and marketing investments [11] - Gross margins improved to 58%, up 100 basis points from last year, despite higher costs of goods sold [11][13] - GAAP earnings per share increased to $0.06 from a loss of $0.01 in the prior year, while adjusted earnings per share decreased to $0.05 from $0.06 [14] Business Line Data and Key Metrics Changes - Cellular and Molecular technology revenue increased by 17%, driven by strong direct sales performance in both the U.S. and Europe [15] - Preclinical revenue decreased by 9% due to lower demand in Europe and shipment delays in China, with expectations for recovery in Q4 [16][17] - The strong U.S. dollar negatively impacted revenue by approximately $900,000, affecting overall performance [10][17] Market Data and Key Metrics Changes - The U.S. market showed steady growth, while Europe experienced volatility, particularly in commercial biopharma sectors [19][20] - China remains a critical market, but the outlook has become ambiguous due to lockdowns and economic conditions, with a planned revenue-related cost base at a lower level [19] Company Strategy and Development Direction - The company is focusing on direct sales of high-margin cellular products and has announced actions to optimize its product portfolio by discontinuing non-strategic product lines [12][40] - The goal for 2023 includes achieving double-digit revenue growth, gross margins of 60%, and operating margins in the mid- to upper teens [47][41] - Investments in R&D for new product development are expected to support long-term growth [41] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative view on annual revenue growth, expecting a range of 1% to 5% year-over-year due to currency impacts and market volatility [40] - The company anticipates a return to growth in Q4, with improvements in free cash flow and reductions in net debt for the second half of the year [41][39] - Inflation and higher interest rates have been factored into the financial outlook, with expectations for continued impacts from currency fluctuations [48][51] Other Important Information - A global workforce reduction of approximately 5% is planned to optimize operations and reduce costs, with expected severance costs of about $1 million per quarter [12][30] - The company recorded a $4 million asset tied to convertible preferred stock as part of a litigation settlement, which is expected to positively impact cash flow [35][34] Q&A Session Summary Question: Impact of new guidance on long-term perspective - Management believes changes are designed to help achieve a growth structure for 2023, with Q4 expected to mark the beginning of recovery [45][46] Question: Changes in inputs or inflation - Management noted a $900,000 impact from currency, which is expected to continue affecting revenue [48] Question: Portfolio pruning impact - Currency impacts and portfolio rationalization are expected to affect margins, with a potential 300 basis point impact [53][55] Question: Products driving growth in Cellular and Molecular - Key products include high-end cellular testing products and new inhalation capabilities, which are expected to drive future growth [60][62]
Harvard Bioscience(HBIO) - 2022 Q2 - Earnings Call Presentation
2022-08-04 18:23
NASDAQ: HBIO Q2'22 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO August 4, 2022 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements Information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "g ...
Harvard Bioscience(HBIO) - 2022 Q1 - Earnings Call Presentation
2022-05-05 07:03
NASDAQ: HBIO Q1'22 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO May 4, 2022 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements Information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "guid ...
Harvard Bioscience(HBIO) - 2022 Q1 - Earnings Call Transcript
2022-05-04 16:36
Financial Data and Key Metrics Changes - Revenue increased by 7% year-over-year, reaching $28.8 million, with pre-clinical revenue up 10% and Cellular Molecular Technology (CMT) revenue up 7% [5][8] - Adjusted operating margin decreased to 8% from 12% in the previous year, impacted by shipment delays, inflation, and growth investments [5][8] - Gross margin remained flat at 57%, with a GAAP gross margin of 56.2%, up 100 basis points from last year despite higher costs [6][8] - GAAP operating income was negative $6.7 million, including a $5 million charge related to litigation settlement, while adjusted operating income was $2.4 million [8][19] - Adjusted earnings per share was $0.04, down $0.01 from the prior year, and GAAP earnings per share reflected a loss of $0.17 [8] Business Line Data and Key Metrics Changes - Cellular and Molecular Technology revenue was impacted by shipment delays due to lockdowns in China, but order intake from North America remained strong [9][10] - Pre-clinical product revenue increased by 10%, although it faced similar shipment delays in China [10] - Currency fluctuations negatively impacted revenue by approximately $0.5 million [10] Market Data and Key Metrics Changes - Asia accounted for about 20% of total revenue, primarily from China, which is expected to recover in the second half of the year [28][29] - European orders were delayed due to COVID lockdowns but have started to recover [9] Company Strategy and Development Direction - The company aims for profitable double-digit growth and is focusing on integrating brands and products to address market needs [12][14] - Plans to prune low-quality non-strategic product sales are in place, with expectations of improving product mix and leveraging the business platform [24][39] - Continued investment in research and development is expected to drive future growth, with adjusted operating margins projected to improve to 14% to 16% [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering order intake from China and anticipates a strong second half of the year [30][31] - The company expects year-over-year revenue growth in the range of 8% to 13% and gross margins to improve to 58% to 59% [23][25] - Management acknowledged ongoing supply chain challenges but emphasized efforts to mitigate costs and improve operational efficiency [16][18] Other Important Information - The company recorded a $5 million charge related to a litigation settlement, with cash outflows expected primarily in Q2 2022 [19] - Capital expenditures for 2022 are projected to be approximately $2 million, with $500,000 spent in Q1 [20] Q&A Session Summary Question: What percentage of company revenue comes from China? - Management clarified that approximately 20% of revenue is derived from Asia, with most of that from China [28][29] Question: If China recovers, what impact would that have on revenue guidance? - Management indicated that recovery in China could lead to achieving the upper end of revenue guidance, as delays are expected to convert into orders [30][31] Question: Is the target for 60% adjusted gross profit margins still achievable this year? - Management expressed confidence in reaching around 60% gross profit margins by the end of the year, despite challenges in Q1 [37] Question: How quickly can low-quality products be removed from the portfolio? - Management expects to see significant pruning of low-quality products in the second half of the year, with a focus on replacing them with more strategic offerings [39] Question: Are there any new products in the pipeline? - Management confirmed ongoing product development, with around 15 new products introduced in recent years, including upgrades to respiratory products [42][44]
Harvard Bioscience(HBIO) - 2021 Q4 - Earnings Call Transcript
2022-03-08 19:07
Harvard Bioscience, Inc. (NASDAQ:HBIO) Q4 2021 Earnings Conference Call March 8, 2022 8:00 AM ET Company Participants David Sirois - Director of Corporate Accounting & SEC Reporting James Green - President & Chief Executive Officer Michael Rossi - Chief Financial Officer Conference Call Participants Paul Knight - KeyBanc Tim Chiang - Northland Securities Lisa Springer - Singular Research Bruce Jackson - Benchmark Operator Good morning and thank you for standing by. Welcome to the Fourth Quarter 2021 Harvard ...
Harvard Bioscience(HBIO) - 2021 Q4 - Earnings Call Presentation
2022-03-08 18:27
NASDAQ: HBIO Q4'21 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO March 8, 2022 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements Information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "gu ...
Harvard Bioscience(HBIO) - 2021 Q3 - Earnings Call Presentation
2021-11-03 19:38
Q3 2021 Performance Highlights - Revenue reached $29.7 million, a 23% increase compared to Q3 2020 and an 8% increase compared to pre-COVID levels in Q3 2019 [5, 6, 11] - Pre-Clinical product line revenue increased by 28% due to strong global demand [5, 11] - Cellular & Molecular product line revenue increased by 19% as academic labs continued to recover from lockdowns [5, 11] - Adjusted Operating Income was $3.9 million with an Adjusted Operating Margin of 13.3% [6, 14] Financial Details - Gross Margin was 55%, a decrease of 110 bps compared to Q3 2020 [6, 19] - Adjusted Gross Profit was $16.4 million with an Adjusted Gross Margin of 55.5% [14] - Adjusted Operating Expenses were $12.5 million, representing 42.1% of revenue [14] - Net Debt decreased from 41.6 million in Q3'20 to 40.9 million in Q3'21 [13] Outlook - The company increased its revenue growth outlook for 2021 to 15-17% [16] - The company expects to maintain mid-teens Adjusted Operating Margins [16]
Harvard Bioscience(HBIO) - 2021 Q3 - Earnings Call Transcript
2021-11-03 15:56
Harvard Bioscience, Inc. (NASDAQ:HBIO) Q3 2021 Earnings Conference Call November 3, 2021 8:00 AM ET Company Participants David Sirois - Director, Corporate Accounting & SEC Reporting James Green - President, CEO & Chairman Michael Rossi - CFO Conference Call Participants Lisa Springer - Singular Research Paul Knight - KeyBanc Capital Markets Timothy Chiang - Northland Capital Markets Bruce Jackson - The Benchmark Company Ailon Grushkin - Nano-Cap Growth Operator Good day, and thank you for standing by. Welc ...
Harvard Bioscience(HBIO) - 2021 Q2 - Earnings Call Presentation
2021-08-16 19:39
NASDAQ: HBIO Q2'21 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO August 5, 2021 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements Information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "g ...
Harvard Bioscience(HBIO) - 2021 Q2 - Earnings Call Transcript
2021-08-08 20:51
Financial Data and Key Metrics Changes - Revenue increased by 25% compared to Q2 2020, reaching $29.2 million, returning to pre-COVID levels [8][11] - Gross margin was 56%, down 340 basis points from the previous year due to increased costs from global supply chain issues [11][12] - Adjusted operating income was $4.3 million, with an adjusted operating margin of 14.6% [12] - GAAP earnings per share improved to negative $0.01 from negative $0.04 last year, while adjusted earnings per share rose to $0.06 from $0.05 [12] Business Line Data and Key Metrics Changes - Cellular and molecular product revenue grew by 22%, driven by strong order and backlog growth, despite shipment delays [13] - Preclinical product revenue increased by 20%, supported by strong demand from CROs, pharma, and academic labs [14] - Sales in the Americas rose by 28%, while Europe saw a 32% increase, indicating strong academic lab demand [15] Market Data and Key Metrics Changes - European labs are recovering, although slowly, with expectations for improved demand as the year progresses [15][46] - Overall reported revenue grew by 25%, with a 21% increase on a currency-adjusted basis [15] Company Strategy and Development Direction - The company aims to focus on organic sales growth and new product introductions while addressing COGS issues from supply chain disruptions [29][30] - There is an emphasis on improving sales effectiveness and marketing to drive revenue growth [29] - The company plans to continue portfolio rationalization to enhance revenue quality [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from global supply chain disruptions but expressed confidence in improving operational efficiencies and cost management [30][39] - The outlook for revenue growth has been raised to approximately 12% to 15% for the year, with expectations for continued gross margin expansion [31][34] - Management is optimistic about achieving sustained double-digit revenue growth in the future [49] Other Important Information - The company introduced 17 new products in the first half of the year, with a focus on preclinical and cellular product lines [17][68] - The restructuring program initiated in 2019 has resulted in $7 million of annualized cost savings [24] Q&A Session Summary Question: How fixable are the supply chain issues? - Management indicated that while some costs are expected to remain, improvements in supply chain management will help reduce costs over the next few quarters [37][39] Question: What products drove the 25% Q2 growth? - The preclinical DSI products and inhalation products were significant contributors to growth, despite some shipment constraints [41][42] Question: Will new product launches be delayed due to supply chain issues? - Some delays are anticipated, but new product introductions are expected to drive sustained revenue growth [53] Question: Is there an expected increase in demand from academic labs in the fall? - Management expects demand to increase as new budgets are allocated at the start of the academic year [55] Question: Will the backlog be worked through in the second half of the year? - Management does not expect to clear the entire backlog but anticipates getting closer to a normalized backlog by year-end [60][62] Question: What areas are the new products focused on? - Most new products are in the preclinical line, with significant investments in software systems and cellular testing capabilities [68][70]