Harvard Bioscience(US:HBIO)2022-11-09 01:00Revenue 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]