Financial Data and Key Metrics Changes - Reported revenue for Q4 2022 was $28.4 million, down 14% from Q4 2021, and down 11% when adjusting for a $1 million currency impact [17][65] - Adjusted gross margin recovered to 57%, consistent with historical margins, despite the impact of low-margin obsolete products [7][65] - Adjusted operating margin was 12%, with adjusted EBITDA at 13% of revenue [18] - Adjusted EPS was $0.04 per share, down from $0.08 in the previous year [18] - Cash flow from operations was $2.7 million, a significant increase from $100,000 in Q4 2021 [86] Business Line Data and Key Metrics Changes - Pre-clinical products revenue decreased by 19% in constant currency compared to a strong Q4 2021, with order demand recovering later in the quarter [19][61] - Cellular molecular technology revenue was roughly flat when adjusted for currency, with solid growth in Asia Pacific offset by slowness in the Americas [61] - New product launches included the U7500 Premium Spectrophotometer and a continuous glucose monitoring implant, expected to drive growth in 2023 [26][23] Market Data and Key Metrics Changes - The strong U.S. dollar compared to the euro and British pound resulted in a currency impact of $1 million [8] - China is anticipated to be a major growth driver, with improvements expected across product lines following the easing of lockdowns [82][94] Company Strategy and Development Direction - The company is focusing on portfolio optimization and cost reductions to support revenue growth targets of 58% to 60% gross margins and high-teen EBITDA margins [16][75] - There is a strategic shift towards expanding consumable and service offerings alongside new product introductions, particularly in bioproduction [31][98] - The company aims to reduce debt significantly in 2023, targeting a leverage ratio of 2x by year-end [88][74] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation and currency fluctuations but expressed confidence in the company's ability to improve margins and operational efficiency [47][54] - The outlook for 2023 is positive, with expectations of low to mid-single-digit revenue growth and improved gross margins [76][75] - Management emphasized the importance of organic growth while also considering potential M&A opportunities to enhance business development [37][46] Other Important Information - Interest expense increased to $900,000 in Q4 2022 from $400,000 in Q4 2021, with plans to mitigate further expense growth through an interest rate swap [68] - The company is transitioning to report adjusted EBITDA instead of operating income, aligning with cash flow improvement focus [73] Q&A Session Summary Question: What is the expected cadence of gross margin improvement in 2023? - Management expects gross margin to improve almost immediately, targeting 58% to 60% by the end of the year, particularly with higher volumes in Q4 [79] Question: What is the outlook for the Chinese market? - Management sees China as a major growth driver, with anticipated growth across product lines despite past disruptions from lockdowns [82][94] Question: How will non-cash expenses change in 2023? - Non-cash expenses are expected to remain stable, with the primary change being the addition of depreciation in the new EBITDA reporting [91]

Financial Performance - Q4 2022 revenue was $28.4 million, a 14% decrease compared to $33.1 million in Q4 2021[22, 27] - The company expects to reduce debt leverage to approximately 2x level by the end of 2023[7] - Adjusted Gross Margin was 57% of revenue in Q4 2022, compared to 60% in Q4 2021[22] - Adjusted EBITDA was $3.7 million in Q4 2022, representing 13% of revenue, compared to $5.7 million and 17% in Q4 2021[22] - Adjusted EPS was $0.04 in Q4 2022, compared to $0.08 in Q4 2021[22] - Cash flow from operations was $2.7 million in Q4 2022, compared to $0.1 million in Q4 2021[22] Product Revenue - Cellular & Molecular product revenue was $14.7 million in Q4 2022, a 2% decrease compared to $14.9 million in Q4 2021[27] - Pre-Clinical revenue was $14.8 million in Q4 2022, a 19% decrease compared to $18.2 million in Q4 2021[27] Outlook - The company anticipates low-to-mid single digit revenue growth in 2023, which includes an approximate 4 percentage points impact from discontinued products[31]

Q3 2022 Performance - Revenue was $26.9 million, a decrease of 9% compared to Q3 2021, which includes a currency impact of -$1.0 million[5, 11] - Pre-Clinical revenue decreased by 17% due to lower EMEA CRO/pharma sales and APAC challenges [6] - Adjusted Operating Margin was 2.6%, significantly lower than the 13.3% in Q3 2021 [5] - Adjusted Gross Margin was 50.6%, down from 55.5% in Q3 2021, impacted by inflation and lower absorption [12] - Cash flow from operations was $0.6 million in Q3 2022 [11] Financial Position - Net debt decreased by $0.2 million in Q3 2022 [11] - Leverage ratio (Debt-to-TTM Adj EBITDA) was 3.9x at the end of Q3 2022 [11, 13] 2022 Outlook - The company expects Q4 2022 revenue to be in the $30 million range [15] - The company anticipates full-year 2022 revenue to be approximately $115 million, with a gross margin of 55% to 56% and an operating margin of 9% to 10% [15] - The company aims for gross margins in the 58% to 60% range and Adjusted EBITDA margins in the high teens [5, 15]

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $26.9 million, a decrease of 9% from the previous year, with a 6% growth in cellular/molecular technology offset by a 17% decline in preclinical sales [9][11] - Adjusted operating margin fell to 2.6% from 13.3% year-over-year, while gross margins decreased to 51% from 56% due to inflation and lower absorption [11][20] - Free cash flow from operations was $700,000, and net debt remained flat [12][27] Business Line Data and Key Metrics Changes - Cellular/molecular technology revenue increased by 6% on a constant currency basis, driven by strong direct sales, while preclinical products saw a 17% decline [13][14] - The U.S. experienced slower telemetry sales to CROs, although there is an expectation for improvement in Q4 [15][56] Market Data and Key Metrics Changes - The strong U.S. dollar negatively impacted revenue by approximately $1 million, particularly affecting sales in Europe and Asia Pacific [15][28] - The company noted a recovery in China, although it faced tough comparisons to prior year sales [14][61] Company Strategy and Development Direction - The company is focused on restructuring and portfolio actions to achieve targeted gross margins of 58% to 60% and EBITDA margins in the high teens by FY '23 [12][35] - New product introductions, including the BTX Electroporation systems and the U7500 spectrophotometer, are expected to drive future growth [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging Q3 but expressed optimism for sequential revenue improvement in Q4, projecting revenue in the $30 million range [34] - The company anticipates a return to mid- to upper single-digit organic growth in 2023, despite the impact of discontinued low-margin products [39][35] Other Important Information - Restructuring costs for Q3 were $1.7 million, with expectations for additional charges in Q4 [29][30] - The company is planning for significantly lower transformation costs in 2023 as restructuring initiatives are completed [36][30] Q&A Session Summary Question: What is the goal for organic growth potential? - Management aims for mid- to upper single-digit growth on a reported basis, with a pro forma view suggesting around 10% to 11% growth [39] Question: Is there more pipeline behind the BTX Electroporation configuration? - Yes, there is a significant pipeline, with the BTX system being used in the development of various new drugs, including COVID vaccines [40][43] Question: How much of the current downturn in the inhalation business is due to economic conditions? - Management indicated that the downturn is partly due to a normalization of sales following the COVID-19 spike, with expectations for growth based on new capabilities [48][49] Question: Were there any discontinued products impacting the top line in Q3? - Yes, the company began phasing out certain low-margin products in Q3, which affected sales [50] Question: What types of studies are seeing an upturn in the CRO pipeline for Q4? - The implantable telemetry continuous monitoring systems are recovering, and the introduction of new glucose products is expected to augment growth [51][52]

Revenue Performance - Revenues decreased by $2.7 million, or 9.2%, to $26.9 million for the three months ended September 30, 2022, compared to $29.7 million for the same period in 2021[77] - Revenues for the nine months ended September 30, 2022, decreased by $0.9 million, or 1.1%, to $84.9 million compared to $85.8 million for the same period in 2021[88] Gross Profit and Margin - Gross profit decreased by $4.1 million, or 25.4%, to $12.2 million for the three months ended September 30, 2022, with a gross margin of 45.2% compared to 55.0% in the prior year[78] - Gross profit for the nine months ended September 30, 2022, decreased by $3.1 million, or 6.5%, to $45.0 million, with a gross margin of 53% compared to 56% in the prior year[89] Expenses - Research and development expenses increased by $0.1 million, or 3.9%, to $2.8 million for the three months ended September 30, 2022, primarily due to higher costs associated with new product development[82] - Sales and marketing expenses decreased by $0.4 million, or 5.9%, to $5.8 million for the three months ended September 30, 2022, attributed to lower outside service costs[80] - General and administrative expenses increased by $0.9 million, or 15.9%, to $6.3 million for the three months ended September 30, 2022, mainly due to higher severance costs[81] - Research and development expenses increased by $1.6 million, or 20.8%, to $9.4 million for the nine months ended September 30, 2022, driven by new product development costs[93] Interest and Tax - Interest expense increased by $0.5 million, or 41.9%, to $1.7 million for the nine months ended September 30, 2022, due to higher interest rates and borrowing balances[96] - The effective tax rate for the nine months ended September 30, 2022, was 5.3%, compared to 1.7% in 2021, influenced by changes in valuation allowances for deferred tax assets[97] Cash and Borrowings - As of September 30, 2022, the company held cash and cash equivalents of $5.1 million, a decrease from $7.8 million at December 31, 2021[100] - Borrowings outstanding were $50.2 million as of September 30, 2022, compared to $49.5 million at December 31, 2021[100] - The weighted average interest rate on borrowings was 6.4% as of September 30, 2022, with an available and unused borrowing capacity of $3.0 million under the Credit Agreement[101] Cash Flow - Cash used in operating activities was $(1.5) million for the nine months ended September 30, 2022, compared to $1.1 million for the same period in 2021[105] - Cash used in investing activities increased to $1.4 million for the nine months ended September 30, 2022, from $1.0 million in 2021, primarily for capital expenditures[106] - Cash used in financing activities was $0.1 million for the nine months ended September 30, 2022, a significant decrease from $2.8 million in 2021[107] Foreign Currency Impact - The company incurred a loss of $2.9 million associated with the translation of foreign equity into U.S. dollars during the three months ended September 30, 2022, compared to a loss of $1.1 million in the same period of 2021[110] - Changes in foreign currency exchange rates resulted in an unfavorable translation effect on consolidated revenues of approximately $1.1 million for the three months ended September 30, 2022[109] Future Outlook - The company expects that available cash, cash generated from operations, and debt capacity will be sufficient to finance operations for at least the next 12 months[103] - The company paid approximately $4.0 million in connection with the Settlement during the nine months ended September 30, 2022[105]

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____to _____ (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name ...

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 ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to _____ (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Commission file number 001-33957 HARVARD BIOSCIE ...