HBIO Reports 29% First Quarter Revenue Growth

Apr 25, 2001, 01:00 ET from Harvard Bioscience, Inc.

    HOLLISTON, Mass., April 25 /PRNewswire/ -- Harvard Bioscience, Inc.
 (Nasdaq:   HBIO) today reported record revenues for the first quarter of 2001.
 Financial highlights for the three months ended March 31, 2001 were as
 follows:
 
     Revenues for the first quarter of 2001 grew 29% before unfavorable foreign
 exchange effects.  Including foreign exchange effects revenue for the first
 quarter was  $8,607,000, up 22% from $7,068,000 last year. Although the
 Company continued to make significant investments in infrastructure and the
 commercialization of new technologies, pro forma income from operations was
 $1,463,000.  Pro forma net income was $1,156,000 compared to $729,000 for the
 same quarter last year, an increase of 59%, and on a diluted per share basis
 $0.05 per share compared to $0.04 per share for the same quarter last year.
 Pro forma net income excludes stock compensation expense and amortization of
 goodwill and other intangibles, net of tax effects, for both periods and
 common stock warrant interest expense incurred in the first quarter of 2000.
     Chane Graziano, CEO of Harvard Bioscience commented:   "Our first quarter
 growth was largely driven by organic growth in our core business.  We continue
 to strengthen our market position with our expanded product offering, the
 introduction of new products and commercialization of new technologies.
 Market demand for our products remains strong overall."
     Reported net income for the first quarter of 2001 was $272,000, or $0.01
 per share, compared to a loss of $4.4 million, or $0.76 per share for the same
 quarter last year.  Reported net income for the first quarter of 2001 included
 a charge of $761,000 for stock compensation expense and $184,000 for
 amortization of goodwill and other intangibles while the same quarter last
 year included $84,000 of stock compensation expense, $132,000 for amortization
 of goodwill and other intangibles and $4.9 million of common stock warrant
 interest expense.  The common stock warrant interest expense was eliminated in
 connection with Harvard Bioscience's initial public offering in December 2000.
     HBIO ended the first quarter of 2001 with cash of $42.4 million.
 
     Harvard Bioscience is a global developer, manufacturer and marketer of
 innovative, enabling tools in drug discovery research at pharmaceutical and
 biotechnology companies, universities and government laboratories.  HBIO sells
 approximately 10,000 products to thousands of researchers in over 60 countries
 though its 1,000 page catalog, and through its distributors, the most notable
 of which is AP Biotech.  HBIO has sales and manufacturing operations in the
 United States, the United Kingdom, and Germany with sales facilities in France
 and Canada.
 
     The statements made in this press release that are not statements of
 historical fact are forward-looking statements within the meaning of Section
 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
 Act of 1934.  These statements involve known and unknown risks, uncertainties
 and other factors that may cause the Company's actual results, performance or
 achievements to be materially different from any future results, performance
 or achievements expressed or implied by the forward-looking statements.
 Forward-looking statements include, but are not limited to statements about
 the Company's intention to strengthen its market position, the Company's or
 management's confidence or expectations, the Company's business strategy, the
 positioning of the Company for growth, the market demand and opportunity for
 the Company's products, and the Company's plans, objectives and intentions
 contained in this press release that are not historical facts.  Other factors
 that may cause the Company's actual results to differ materially from those in
 the forward looking statements include the Company's failure to expand its
 product offering, to introduce new products or to commercialize new
 technologies 0r decreased demand for the Company's products due to changes in
 our customers needs, financial position, general economic outlook, or
 otherwise, as well as those set forth under the heading "Important Factors
 That May Affect Future Operating Results"  in the Company's Annual Report on
 Form 10-K for the fiscal year ended December 31, 2000, as well as other risks
 described in the Company's public filings or factors, if any, of which the
 Company is not currently aware.  The Company may not update these forward-
 looking statements, even though its situation may change in the future, unless
 it has obligations under the Federal securities laws to update and disclose
 material developments related to previously disclosed information.
 
     For investor inquiries, please call (508) 893-8066.  Press releases may be
 found on our web site, http://www.harvardbioscience.com.
 
     As previously announced, investors can listen to a live Webcast of the
 first quarter earnings and updated outlook by going to the Company's web site,
 http://www.harvardbioscience.com, or by dialing into the conference call in
 "listen only" mode at (877)313-7707.   The conference call will begin at 2pm
 on April 26.
 
                            HARVARD BIOSCIENCE, INC.
           PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                        2001           2000
 
     Revenues                                          $8,607         $7,068
     Costs and expenses:
       Cost of sales                                    4,354          3,630
       Research and development expenses                  430            351
       Marketing, general & administrative              2,360          1,686
         Total costs and expenses (1)                   7,144          5,667
 
         Income from operations (1)                     1,463          1,401
 
     Other income (expense) net (2)                       344          (303)
 
         Income before income taxes (1)(2)              1,807          1,098
     Income tax expense (3)                               651            369
         Net income (1)(2)(3)                          $1,156           $729
     Income per share (1)(2)(3)(4)
       Basic                                            $0.05          $0.05
       Diluted                                          $0.05          $0.04
     Weighted average common shares (4)
       Basic                                           25,214         15,268
       Diluted                                         25,633         17,734
 
     (1) Excludes stock compensation expense OF $761,000 and $84,000 and
         amortization of goodwill and other intangibles of $184,000 and
         $132,000, in 2001 and 2000, respectively.
     (2) Excludes common stock warrant interest expense of $4,900,000 in 2000.
     (3) Excludes tax benefit related to items described in footnote (1) of
         $61,000 in 2001 and $20,000 in 2000.
     (4) Assumes conversion of all outstanding shares of convertible preferred
         stock and the exercise of all outstanding warrants in 2000.
 
 
                              HARVARD BIOSCIENCE, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                         Three Months Ended
                                                               March 31,
                                                        2001            2000
 
     Revenues                                         $ 8,607         $7,068
     Costs and expenses:
       Cost of sales                                    4,354          3,630
       Research and development expenses                  430            351
       Marketing, general & administrative              2,360          1,686
       Stock compensation expense                         761             84
       Amortization of goodwill and other intangibles     184            132
         Total costs and expenses                       8,089          5,883
 
         Income from operations                           518          1,185
 
     Other income (expense) net                           344          (303)
     Common stock warrant interest expense                  -        (4,900)
         Total other income (expense), net                344        (5,203)
 
         Income (loss) before income taxes                862        (4,018)
     Income tax expense                                   590            349
         Net income (loss)                                272        (4,367)
     Preferred stock dividends                              -           (41)
         Net income (loss) available to common
          stockholders                                   $272       $(4,408)
     Income (loss) per share
       Basic                                            $0.01        $(0.76)
       Diluted                                          $0.01        $(0.76)
     Weighted average common shares
       Basic                                           25,214          5,803
       Diluted                                         25,633          5,803
 
 
                  Selected Consolidated Balance Sheet Information
                                   (In thousands)
 
                                                     March 31,     December 31,
                                                       2001           2000
 
     Assets
     Cash and cash equivalents                        $42,388        $35,817
     Receivables                                        4,204          4,698
     Inventories                                        3,780          3,722
     Property, plant and equipment                      1,891          1,716
     Goodwill and other intangibles                     9,149          9,562
     Other assets                                       3,207          3,294
       Total assets                                   $64,619        $58,809
     Liabilities
     Total current liabilities                         $4,598         $6,368
     Total liabilities                                  4,703          6,474
     Stockholders' equity                              59,916         52,335
       Total liabilities and stockholders' equity     $64,619        $58,809
 
 
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SOURCE Harvard Bioscience, Inc.
    HOLLISTON, Mass., April 25 /PRNewswire/ -- Harvard Bioscience, Inc.
 (Nasdaq:   HBIO) today reported record revenues for the first quarter of 2001.
 Financial highlights for the three months ended March 31, 2001 were as
 follows:
 
     Revenues for the first quarter of 2001 grew 29% before unfavorable foreign
 exchange effects.  Including foreign exchange effects revenue for the first
 quarter was  $8,607,000, up 22% from $7,068,000 last year. Although the
 Company continued to make significant investments in infrastructure and the
 commercialization of new technologies, pro forma income from operations was
 $1,463,000.  Pro forma net income was $1,156,000 compared to $729,000 for the
 same quarter last year, an increase of 59%, and on a diluted per share basis
 $0.05 per share compared to $0.04 per share for the same quarter last year.
 Pro forma net income excludes stock compensation expense and amortization of
 goodwill and other intangibles, net of tax effects, for both periods and
 common stock warrant interest expense incurred in the first quarter of 2000.
     Chane Graziano, CEO of Harvard Bioscience commented:   "Our first quarter
 growth was largely driven by organic growth in our core business.  We continue
 to strengthen our market position with our expanded product offering, the
 introduction of new products and commercialization of new technologies.
 Market demand for our products remains strong overall."
     Reported net income for the first quarter of 2001 was $272,000, or $0.01
 per share, compared to a loss of $4.4 million, or $0.76 per share for the same
 quarter last year.  Reported net income for the first quarter of 2001 included
 a charge of $761,000 for stock compensation expense and $184,000 for
 amortization of goodwill and other intangibles while the same quarter last
 year included $84,000 of stock compensation expense, $132,000 for amortization
 of goodwill and other intangibles and $4.9 million of common stock warrant
 interest expense.  The common stock warrant interest expense was eliminated in
 connection with Harvard Bioscience's initial public offering in December 2000.
     HBIO ended the first quarter of 2001 with cash of $42.4 million.
 
     Harvard Bioscience is a global developer, manufacturer and marketer of
 innovative, enabling tools in drug discovery research at pharmaceutical and
 biotechnology companies, universities and government laboratories.  HBIO sells
 approximately 10,000 products to thousands of researchers in over 60 countries
 though its 1,000 page catalog, and through its distributors, the most notable
 of which is AP Biotech.  HBIO has sales and manufacturing operations in the
 United States, the United Kingdom, and Germany with sales facilities in France
 and Canada.
 
     The statements made in this press release that are not statements of
 historical fact are forward-looking statements within the meaning of Section
 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
 Act of 1934.  These statements involve known and unknown risks, uncertainties
 and other factors that may cause the Company's actual results, performance or
 achievements to be materially different from any future results, performance
 or achievements expressed or implied by the forward-looking statements.
 Forward-looking statements include, but are not limited to statements about
 the Company's intention to strengthen its market position, the Company's or
 management's confidence or expectations, the Company's business strategy, the
 positioning of the Company for growth, the market demand and opportunity for
 the Company's products, and the Company's plans, objectives and intentions
 contained in this press release that are not historical facts.  Other factors
 that may cause the Company's actual results to differ materially from those in
 the forward looking statements include the Company's failure to expand its
 product offering, to introduce new products or to commercialize new
 technologies 0r decreased demand for the Company's products due to changes in
 our customers needs, financial position, general economic outlook, or
 otherwise, as well as those set forth under the heading "Important Factors
 That May Affect Future Operating Results"  in the Company's Annual Report on
 Form 10-K for the fiscal year ended December 31, 2000, as well as other risks
 described in the Company's public filings or factors, if any, of which the
 Company is not currently aware.  The Company may not update these forward-
 looking statements, even though its situation may change in the future, unless
 it has obligations under the Federal securities laws to update and disclose
 material developments related to previously disclosed information.
 
     For investor inquiries, please call (508) 893-8066.  Press releases may be
 found on our web site, http://www.harvardbioscience.com.
 
     As previously announced, investors can listen to a live Webcast of the
 first quarter earnings and updated outlook by going to the Company's web site,
 http://www.harvardbioscience.com, or by dialing into the conference call in
 "listen only" mode at (877)313-7707.   The conference call will begin at 2pm
 on April 26.
 
                            HARVARD BIOSCIENCE, INC.
           PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                        2001           2000
 
     Revenues                                          $8,607         $7,068
     Costs and expenses:
       Cost of sales                                    4,354          3,630
       Research and development expenses                  430            351
       Marketing, general & administrative              2,360          1,686
         Total costs and expenses (1)                   7,144          5,667
 
         Income from operations (1)                     1,463          1,401
 
     Other income (expense) net (2)                       344          (303)
 
         Income before income taxes (1)(2)              1,807          1,098
     Income tax expense (3)                               651            369
         Net income (1)(2)(3)                          $1,156           $729
     Income per share (1)(2)(3)(4)
       Basic                                            $0.05          $0.05
       Diluted                                          $0.05          $0.04
     Weighted average common shares (4)
       Basic                                           25,214         15,268
       Diluted                                         25,633         17,734
 
     (1) Excludes stock compensation expense OF $761,000 and $84,000 and
         amortization of goodwill and other intangibles of $184,000 and
         $132,000, in 2001 and 2000, respectively.
     (2) Excludes common stock warrant interest expense of $4,900,000 in 2000.
     (3) Excludes tax benefit related to items described in footnote (1) of
         $61,000 in 2001 and $20,000 in 2000.
     (4) Assumes conversion of all outstanding shares of convertible preferred
         stock and the exercise of all outstanding warrants in 2000.
 
 
                              HARVARD BIOSCIENCE, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                         Three Months Ended
                                                               March 31,
                                                        2001            2000
 
     Revenues                                         $ 8,607         $7,068
     Costs and expenses:
       Cost of sales                                    4,354          3,630
       Research and development expenses                  430            351
       Marketing, general & administrative              2,360          1,686
       Stock compensation expense                         761             84
       Amortization of goodwill and other intangibles     184            132
         Total costs and expenses                       8,089          5,883
 
         Income from operations                           518          1,185
 
     Other income (expense) net                           344          (303)
     Common stock warrant interest expense                  -        (4,900)
         Total other income (expense), net                344        (5,203)
 
         Income (loss) before income taxes                862        (4,018)
     Income tax expense                                   590            349
         Net income (loss)                                272        (4,367)
     Preferred stock dividends                              -           (41)
         Net income (loss) available to common
          stockholders                                   $272       $(4,408)
     Income (loss) per share
       Basic                                            $0.01        $(0.76)
       Diluted                                          $0.01        $(0.76)
     Weighted average common shares
       Basic                                           25,214          5,803
       Diluted                                         25,633          5,803
 
 
                  Selected Consolidated Balance Sheet Information
                                   (In thousands)
 
                                                     March 31,     December 31,
                                                       2001           2000
 
     Assets
     Cash and cash equivalents                        $42,388        $35,817
     Receivables                                        4,204          4,698
     Inventories                                        3,780          3,722
     Property, plant and equipment                      1,891          1,716
     Goodwill and other intangibles                     9,149          9,562
     Other assets                                       3,207          3,294
       Total assets                                   $64,619        $58,809
     Liabilities
     Total current liabilities                         $4,598         $6,368
     Total liabilities                                  4,703          6,474
     Stockholders' equity                              59,916         52,335
       Total liabilities and stockholders' equity     $64,619        $58,809
 
 
                      MAKE YOUR OPINION COUNT - Click Here
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 SOURCE  Harvard Bioscience, Inc.