Harvard Bioscience Inc. (NASDAQ:HBIO) Q1 2019 Earnings Conference Call Transcript

May 02, 2019 • 04:30 pm ET

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Harvard Bioscience Inc. (NASDAQ:HBIO) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Q1 2019 Harvard Bioscience Incorporated Earnings Conference Call. My name is Adrienne, and I'll be your operator for today's call.

(Operator Instructions) Please note, this conference is being recorded.

I'll now turn the call over to Corey Manchester. Corey Manchester, you may begin.

Executive
Corey Manchester

Thank you, Adrienne, and good afternoon, everyone. Thank you for joining us for the Harvard Bioscience first quarter 2019 earnings conference call. Leading the call today will be Jeffrey Duchemin, President and Chief Executive Officer, and Kam Unninayar, Chief Financial Officer of Harvard Bioscience.

Before I turn the call over to Jeff, I will read our safe harbor statement. In our discussion today, we may make statements that constitute forward-looking statements. Our actual results and performance may differ materially from what we have projected due to risks and uncertainties, including those in our Annual Report on Form 10-K for the period ended December 31, 2018 and our other public filings. Any forward-looking statements, including those related to the Company's future results and activities, represent our estimates as of today and should not be relied upon as representing our estimates as of any subsequent day.

Also, much of today's call will focus on our non-GAAP quarterly results, which we believe better represents the ongoing economics of the business, reflects how we set and measure our incentive compensation plans and how we manage the business internally. The differences between our GAAP and non-GAAP results are outlined in the earnings release we issued today which can be found on our website under Press Releases. Additionally, any material, financial or other statistical information presented on the call, which is not included in our press release, will be archived and available in the Investor Relations section of our website. A replay of this call will also be available for one week at the same location on our website at harvardbioscience.com.

I will now turn the call over to Jeff. Jeff, please go ahead.

Executive
Jeffrey Duchemin

Thanks, Corey. Good afternoon, everyone, and thank you for joining us for our Q1 earnings call. During today's call, I will provide an overview of our first quarter operating results as well as general commentary on business end markets. Kam will then review our financial results in detail, including 2019 guidance. After that, we'll take your questions.

First quarter revenue was $28.2 million, a 2% increase over revenue for the first quarter last year and came within our previously communicated revenue guidance range. Organically, our revenue declined approximately 4% from last year's Q1. On the bottom line, EPS for the quarter came in at $0.02 a share, $0.01 lower than our previously communicated range. These results were a disappointing start to the year.

Overall, in the quarter, we experienced a greater-than-expected impact on revenue due to uncertainty in end markets, specifically around Brexit, China tariffs and the funding impact of the U.S. government shutdown. We expect some of these trends to continue through the second quarter. Additionally, we have experienced some lumpiness in buying patterns of our