Harvard Bioscience Inc (HBIO) Reports Q3 2023 Earnings: Gross Margin Expands Amid Revenue Decline
Harvard Bioscience Inc (NASDAQ:HBIO) reported a 6% decline in Q3 2023 revenue compared to the same period in 2022.
Despite the revenue decline, the company's gross margin improved significantly, reaching 58.1% in Q3 2023 compared to 45.2% in Q3 2022.
The company reduced its debt by $2.8 million and net debt by $3.8 million during Q3 2023.
For the nine months ended September 30, 2023, the company reported a net loss of $1.6 million.
Harvard Bioscience Inc (NASDAQ:HBIO) released its third-quarter earnings report for 2023 on November 7, 2023. The company reported a 6% decline in revenue, from $26.9 million in Q3 2022 to $25.4 million in Q3 2023. This decline included a net reduction of $1.3 million from discontinued products compared to the same period last year.
Financial Performance
Despite the decline in revenue, Harvard Bioscience Inc (NASDAQ:HBIO) reported a significant improvement in its gross margin, which increased from 45.2% in Q3 2022 to 58.1% in Q3 2023. The company's CEO, Jim Green, attributed this improvement to the company's enhanced portfolio.
The company reported a net loss of $1.2 million for Q3 2023, which included a favorable impact of a $1.2 million mark-to-market adjustment of marketable securities. This compares to a net loss of $3.4 million in Q3 2022, which included inventory charges.
Debt Reduction and Cash Flow
Harvard Bioscience Inc (NASDAQ:HBIO) managed to reduce its debt by $2.8 million and its net debt by $3.8 million during Q3 2023. The company also reported a cash flow of $4.4 million provided by operations for Q3 2023, compared to $0.6 million in the same period last year.
Nine Months Ended September 30, 2023 Highlights
For the nine months ended September 30, 2023, the company reported revenues of $84.1 million, compared to $84.9 million in the same period a year ago. The net loss for the nine months ended September 30, 2023 was $1.6 million, compared to a net loss of $7.9 million for the comparable period of 2022.
2023 Updated Guidance
Considering the headwinds in Asia, the company expects its fiscal 2023 revenue to be approximately flat compared to 2022. However, it continues to expect gross margins of approximately 60% for the year 2023 and adjusted EBITDA margins in the 13% to 14% range.
Explore the complete 8-K earnings release (here) from Harvard Bioscience Inc for further details.
This article first appeared on GuruFocus.
