Harvard Bioscience Inc (HBIO) Reports Mixed Fourth Quarter and Full Year 2023 Results
Revenue: Q4 revenue slightly down by 1% year-over-year, full-year revenue decreased to $112.3 million from $113.3 million.
Gross Margin: Improved to 58.9% for the full year, up from 53.7% in the previous year.
Operating Income: Q4 GAAP operating income at $0.3 million, full-year adjusted operating income increased to $13.1 million.
Net Loss: Q4 net loss widened to $(1.8) million, full-year net loss improved to $(3.4) million from $(9.5) million.
Adjusted EBITDA: Q4 remained stable at $3.6 million, full-year rose to $14.6 million from $10.8 million.
Debt Reduction: Reduced by $10.5 million during the year, with net leverage ratio improving from 4.0 to 2.3.
On March 7, 2024, Harvard Bioscience Inc (NASDAQ:HBIO) released its 8-K filing, announcing the financial results for the fourth quarter and the full year ended December 31, 2023. The company, a global developer, manufacturer, and seller of technologies for life science research and pre-clinical testing, faced a modest revenue decline in a challenging Asia-Pacific (APAC) market.
Despite a slight decrease in revenue, Harvard Bioscience saw a significant expansion in gross margin, attributed to an enhanced product portfolio and the discontinuation of certain products. The gross margin for the full year improved notably to 58.9% from 53.7% in the previous year. Operating income for the fourth quarter was reported at $0.3 million, a turnaround from a loss of $(0.5) million in the same quarter of the prior year. Adjusted operating income for the year increased to $13.1 million from $9.5 million.
However, the company reported a net loss of $(1.8) million for the fourth quarter, slightly worse than the $(1.7) million loss in the fourth quarter of the previous year. The full-year net loss showed improvement, narrowing to $(3.4) million from $(9.5) million, which included an unfavorable impact from unrealized losses on marketable securities.
Adjusted EBITDA for the fourth quarter was stable at $3.6 million, while the full-year adjusted EBITDA increased to $14.6 million from $10.8 million, reflecting the company's operational efficiency and cost management. Cash flow from operations was strong, with $14.0 million generated in the full year compared to $1.2 million in the previous year. Debt was significantly reduced by $10.5 million during the year, and the net leverage ratio improved from 4.0 to 2.3.
For the full year 2024, Harvard Bioscience expects flat to modest revenue growth, with a stronger second half anticipated due to new product commercializations and improvements in the Chinese market conditions. The company also projects further gross margin expansion to approximately 60% and an adjusted EBITDA margin improvement to the mid-teens.
Harvard Bioscience's financial achievements in the face of market challenges demonstrate the company's resilience and strategic focus on high-growth areas such as bioproduction and advanced cell applications. These results are particularly important for a company in the Medical Devices & Instruments industry, where innovation and efficient cost management are key drivers of success.
Investors and analysts interested in further details are encouraged to attend the company's conference call and webcast, where management will discuss the results and provide additional insights into Harvard Bioscience's performance and outlook.
Harvard Bioscience's full financial tables and reconciliation of GAAP to non-GAAP financial measures are available in the company's 8-K filing, providing a comprehensive view of the company's financial health.
For more information and to stay updated on Harvard Bioscience's latest developments, please visit www.harvardbioscience.com.
Explore the complete 8-K earnings release (here) from Harvard Bioscience Inc for further details.
This article first appeared on GuruFocus.
