Harvard Bioscience Posts 63 Percent Revenue Growth for Q2

NEW YORK, July 28 - Harvard Bioscience today reported year-over-year revenue growth of 63 percent for the second quarter of 2003, after favorable foreign exchange effects, accompanied by a 25 percent decline in net income.

The company posted $22.4 million in revenues for the quarter ended June 30, 2003, up from $13.7 million for the year-ago period. Excluding favorable foreign exchange effects of approximately $865,000, revenue for the second quarter grew 57 percent.

Net income for the second quarter of 2003 was $743,000 on a GAAP basis, compared with $1.0 million for the second quarter of 2002. Second-quarter net income included charges for non-cash stock compensation expense of $134,000 and $331,000 and amortization of intangibles of $729,000 and $307,000 for 2003 and 2002, respectively, before tax, as well as charges of $205,000 related to the acquisitions of Genomic Solutions, BTX, and GeneMachines.

Net income for the second quarter also included a one-time charge of $815,000 for an arbitration award in favor of the former shareholders of Union Biometrica. The charge contributed a $0.01 per-share impact for the quarter, bringing basic and diluted per-share net income for the quarter to $0.02, compared to $0.04 for the second quarter of 2002.

Excluding stock compensation expense and amortization of intangibles, pro forma net income totaled $1.9 million for the second quarter of 2003 compared to $1.5 million for the second quarter of 2002.

Harvard Bioscience incurred $1.7 million in R&D expenses for the second quarter of 2002, up slightly from last year's $1.0 million. The company said that approximately $800,000 of its second-quarter R&D expenses were related to acquisitions completed since the second quarter of 2002.

The company ended the quarter with cash and cash equivalents of $9.2 million, a decrease of approximately $6.1 million since December 31, 2002. $1.3 million in cash was used during the quarter in settlement of a dispute between the company's Genomic Solutions subsidiary and Affymetrix.

Harvard Biosciences is currently negotiating a $25 million revolving credit facility.

Full details of the company's second-quarter earnings, including information on a conference call scheduled for 1:00 EDT tomorrow, are available here.