Harvard Bioscience, Inc (HBIO) saw its loss widen to $1.64 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.85 million, or $0.02 a share. On the other hand, adjusted net income for the quarter stood at $1.11 million, or $0.03 a share compared with $0.90 million or $0.03 a share, a year ago. Revenue during the quarter went down marginally by 2.81 percent to $25.01 million from $25.73 million in the previous year period. Gross margin for the quarter expanded 118 basis points over the previous year period to 46.75 percent. Operating margin for the quarter stood at negative 3.25 percent as compared to a negative 3.01 percent for the previous year period.
Operating loss for the quarter was $0.81 million, compared with an operating loss of $0.78 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1.52 million compared to $1.41 million in the prior year period. At the same time, adjusted operating margin improved 62 basis points in the quarter to 6.10 percent from 5.48 percent in the last year period.
Jeffrey Duchemin, President and Chief executive officer of Harvard Bioscience, said, “Our third quarter revenues were roughly flat year over year on a constant currency basis and, despite a challenging academic end market, these results were counterbalanced by increases in adjusted gross margins and reductions in operating expenses driven by our site consolidation efforts and cost containment measures. The favorable performance in these areas was offset by pressure from slower than expected NIH funding outlays, currency translation, and softness in the European funding environment.”
Harvard Bioscience projects revenue to be in the range of $105 million to $107 million for financial year 2016. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $0.04 to $0.06. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $0.16 to $0.18 on adjusted basis.
Operating cash flow turns positive
Harvard Bioscience, Inc has generated cash of $3.66 million from operating activities during the nine month period as against cash outgo of $1.06 million in the last year period. The company has spent $0.95 million cash to meet investing activities during the nine month period as against cash outgo of $6.84 million in the last year period.
The company has spent $3.66 million cash to carry out financing activities during the nine month period as against cash inflow of $0.62 million in the last year period.
Cash and cash equivalents stood at $5.34 million as on Sep. 30, 2016, down 12.23 percent or $0.75 million from $6.09 million on Sep. 30, 2015.
Working capital declines
Harvard Bioscience, Inc has witnessed a decline in the working capital over the last year. It stood at $27.25 million as at Sep. 30, 2016, down 22.27 percent or $7.80 million from $35.05 million on Sep. 30, 2015. Current ratio was at 2.89 as on Sep. 30, 2016, down from 3.03 on Sep. 30, 2015.
Days sales outstanding were almost stable at 62 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 73 days for the quarter compared with 151 days for the previous year period.
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