Harvard Bioscience, Inc.

Good day and thank you for standing by. Welcome to the Q2 2024 Harvard Bioscience Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. I would now like to hand the conference over to your speaker today. Katherine Flynn, Corporate Controller.

Thank you, Josh, and good morning, everyone. Thank you for joining the Harvard Bioscience Second Quarter 2024 Earnings Conference Call. Leading the call today will be Jim Green, President and Chief Executive Officer, and Jennifer Cody, Chief Financial Officer. In conjunction with today's recorded call, we have provided a presentation that will be referenced during our remarks that is posted to the Investors section of our website at investor.harvardbioscience.com. Please note that statements made in today's discussion that are not historical facts, including statements or expectations or future events or future financial performance, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied. Please refer to today's press release for other disclosures on forward-looking statements. These factors and other risks and uncertainties are described in the company's filings with the Securities and Exchange Commission. Harvard Bioscience assumes no obligation to update or revise any forward-looking statements publicly and management statements are made as of today. During the call, management will also reference certain non-GAAP financial measures, which can be useful in evaluating the company's operations related to our financial condition and results. These non-GAAP measures are intended to supplement GAAP financial information and should not be considered a substitute. Reconciliations of GAAP to non-GAAP measures are provided in today's earnings press release. I will now turn the call over to Jim. Jim, please go ahead.

Thank you, Catherine. Hello, everybody. Let's move to slide three of the presentation and look at our quarterly results. We had a tough first half of the year, and Q2 was more challenging than expected. Revenue in the second quarter came in at $23.1 million. That's down $5.7 million from last year. Taking a minute on the market environment, As expected, slower sales to China and Asia Pacific continued through our second quarter. Q2 also saw the effects of reduced capital spending by our CRO and biopharma customers in Europe and in the U.S., which primarily affected our preclinical product shipments. And I'll mention we're still seeing the impact of some of the supply chain issues, which we do expect to be able to resolve over the course of the second half of this year. Our gross margin came in at 57.2%. but remain strong with primary differences to our target of lower absorption of fixed expenses. On a GAAP basis, we reported an operating loss of $2.1 million. On an adjusted basis, our operating profit measured $800,000, or 3.5% of revenue, and adjusted EBITDA came in at $1.3 million, or 5.5% of revenue. All of that said, we continue to focus on our operating cost structure and our new product initiatives, which we While we weather the challenging market environment, as we announced in April, we took advantage of operating synergies to reduce our operating cost structure and support our ongoing investments in new products. We're seeing these investments come to fruition and expect them to add new revenue streams starting in the second half and help underpin our long-term double-digit revenue growth goal. I'll give some more color to our new product commercializations later in the presentation, but first let me turn it over to Jennifer Cody, our CFO, to discuss our second quarter financial results in more detail. Jen?