Mesa Laboratories Inc (MLAB) Reports 9.5% Decrease in Q2 FY 2024 Revenues
Mesa Laboratories Inc (NASDAQ:MLAB) reports a 9.5% decrease in total revenues for Q2 FY 2024 compared to Q2 FY 2023.
Adjusted Operating Income (AOI) excluding unusual items decreased by 29.1% quarter over quarter.
Company's net loss for Q2 FY 2024 was $1,230, a decrease of 194% compared to Q2 FY 2023.
Mesa Laboratories Inc (NASDAQ:MLAB) implemented cost control actions expected to generate annual savings of approximately $2,000 starting in 3Q24.
On November 6, 2023, Mesa Laboratories Inc (NASDAQ:MLAB), a global leader in the design and manufacturing of life science tools and critical quality control solutions, announced its second fiscal quarter results for the period ended September 30, 2023.
Company Performance and Challenges
The company's performance for the second quarter was lower than the previous year due to sluggish capital equipment orders in the biopharmaceutical vertical and the previously announced customer loss of Sema4 in the Clinical Genomics division. However, the performance was better than the first quarter for both revenues and AOI excluding unusual items. Total revenues for the second quarter were $53,165, resulting in an organic revenue decline of 9.6% versus the same quarter in the prior year.
Financial Achievements and Highlights
Despite the challenges, the company's profitability for 2Q24, as measured by AOI excluding unusual items, was $11,163, a decrease of 29.1% quarter over quarter primarily due to the decreased revenues. However, this number increased by 17.2% sequentially from 1Q24 primarily due to increases in revenues. The company also implemented cost control actions in response to the unclear macroeconomic environment and the specific slowdown in the biopharmaceutical vertical, which are expected to generate annual savings of approximately $2,000 starting in 3Q24.
Income Statement, Balance Sheet, and Cash Flow Statement Summary
Operating income decreased 101.5% to $(60) and net loss was $(1,230), a decrease of 194% or $(0.23) per diluted share of common stock. On a non-GAAP basis, AOI decreased 33.4% to $10,308 or $1.91 per diluted share of common stock compared to 2Q23. Excluding the unusual items for 2Q24 and 2Q23, AOI decreased 29.1% to $11,163.
Division Performance
The Sterilization and Disinfection Control division reported revenues of $17,080 for the quarter, resulting in organic growth of 0.7% and a core organic decline of 1.5%. The Clinical Genomics division reported revenues of $15,549 for the quarter, resulting in an organic decline of 15.7% and a core organic decline of 14.9%. The Biopharmaceutical Development division reported revenues of $9,207, yielding an organic decline of 24.4% and core organic decline of 25.4%. The Calibration Solutions division reported revenues of $11,329, resulting in both organic and core organic growth of 1.1% as compared to the same quarter prior year.
Future Outlook
Despite the challenges faced in the second quarter, the company is optimistic about the future. The company's Biopharmaceutical Development division consumables revenues grew by 4.7% versus the same quarter in the prior year and by 13.2% year to date versus the prior year. The company also added to Mesas capability in the Sterilization & Disinfection Control division through the acquisition of GKE, which is expected to add 19-20 million of revenues over the first 12 months of complete ownership.
Explore the complete 8-K earnings release (here) from Mesa Laboratories Inc for further details.
This article first appeared on GuruFocus.
