HBIO - Earnings call transcript Q3 2024 | Harvard Bioscience, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Third Quarter 2024 Harvard Biosciences Inc. Earnings Conference Call. [Operator Instructions] As a reminder, this call may be recorded. I would like to turn the call over to Kathryn Flynn, Corporate Controller. Please go ahead.

Kathryn Flynn

Thank you, Michelle, and good morning, everyone. the Third joining Conference XXXX for Call. you Harvard Quarter Bioscience Earnings Thank today Green, be Executive the will Leading call Jim Jennifer Chief Officer; Cote, President Financial Officer. and Chief and provided today's statements financial statements and today's call, referenced with or made our is statements of in made Investors that that discussion are to of performance, or remarks, events safe that investor.harvardbioscience.com. Please our are conjunction In or website during we facts, have at XXXX. will forward-looking the Litigation a recorded the not to be expectations the future of Private section posted are future presentation note pursuant including provisions Reform historical harbor Securities that Act Actual results differ implied. from may materially those expressed or press facts for forward-looking are today's on the filings uncertainties and release and risks in and disclosures statements. These the described company's Security with other Please refer Commission. other Exchange to or management today. forward-looking Bioscience to any statements assumes of as revise made and update publicly are obligation no Harvard statements

also Reconciliations condition financial now During financial can over GAAP provided company's our be the information not a GAAP to Jim, please release. I considered Jim. are to to and non-GAAP to turn call, measures in management substitute. press are should earnings non-GAAP call operations related intended evaluating reference certain today's useful of will measures in be supplement the financial ahead. results. the go These which and measures non-GAAP will

James Green

everybody. morning, Good Kathryn. Thanks,

revenue modestly Pacific. about QX now below primarily to year. to Europe Slide at further that third our impacted a in and QX flatten weakness improve market of in Taking quarter going saw weakness or quarters Asia Americas Let's at the sequential XX% were that stabilizing quarterly be on were on or expected basis, take we was and On the million. with move flat. go in roughly look APAC That's last forward. $XX down minute X China China, in sequential seem to presentation Revenue environment. X%, ahead X the and results. a came a now

So a loss stable in milestone. revenue rate we our XX.X%, quarter. to we basis, On X% $X.X products mentioning we'll operating adjusted despite with or a at $XX.X into On or million have our an came worth margin delayed million overall, income X.X% in $XXX,XXX measured run on be revenue new or a despite building market basis, and GAAP revenue recovery, close production. Gross reported that at the now XX% operating we believe of an of low target going EBITDA revenue. It's operating major of came $X.X a adjusted million. base

in onto in During see plagued and us merged for modern QX year. successfully already operations U.S. chain set This transitioned improvement management delayed significant over which supply supply and QX, well enterprise one we in chain related both system. all tool and inventory X we ERP improvements shipments, enables early have

Jennifer turn discuss the a QX, third reduce million overall our the commercializations CFO, color revenue new low our quarter over in focus took even quarter. financial let to first, operating by combined and fourth optimize our to gross structurally leverage detail. long-term improve now I'll with to reductions we actions our efficiencies the give and our quarter improve are to introductions and in margins, cost quarters. Operating Cote, These designed Jen? results costs, in cost new it further in with expected are operating are during and addition, beyond. In expected additional an expense EBITDA QX shipping product early and some operating product presentation. But more on later more significantly strong with me on continued which additional $X fourth our operations, on to here beginning and reductions quarter, from self-funding business enable of to

Jennifer Cote

and you, everyone. Thank Jim, hello,

into Let's further financials. details on dive our

can with last the Starting reported in for can to and QX. Americas, quarter Slide you and as is product the region. revenue by to year we If compared QX sequentially, family revenue as down where the from XX% at you stabilizing X look QX third see, will move and quarter was

we We to software. the with Telemetry products QX a slightly. Cellular compared as revenue stabilization updates. to keeping preclinical see showed off saw there starting have of still and CROs but XX% quarter, industry Americas. growth. modest Sequentially, the to XX% Pharma Preclinical on are optimism sales CMT pleased down of last QX, COVID-related decline these Sequentially, respiratory signs to due showed year of growth spending, is year. are a to prior leveled sales Molecular and listen compared in primarily system and hold tight

Overall Europe. to sequentially. down QX for to but stabilized has last remained compared effectively XX% X year, was revenue flat last on Moving has Revenue about quarters. the also

to primarily Preclinical We compared sales. were remained basis compared were European are experiencing overall our stabilization sales driven prior QX CMT by Compared challenged Molecular and year. this sequential year-over-year down to testing. increases in sequential cell-based of saw sales in Cellular as year. down on a X% growth to XX% and QX,

While of the budgets see general stayed in the at starting overall remain has are tight orders and flat as in QX. improvements Europe, revenue to start economic a environment we result of

compared from prior down compared sequentially to prior XX%. erosion, down to saw products past market and from continued against further XX% difficult Cellular XX% to spend has revenue and XX% -- sequentially Preclinical due APAC QX year Moving both to sales in which especially affected QX lower QX to was sequentially down year China and lower year QX. The prior are CROs. preclinical and down APAC this sales the year, CMT. been in and Molecular has by Overall, down QX Asia X% and Pacific.

months. is X for look moderate flat a expecting clear profile, to at point that are order We we trailing end sequentially to global X-month the our been starting is inflection of encouraging QX. What June, improvement at now in when we growth has see increasing

its is on trend booking way up. Our

now are growing. We

our and I MEA products, new adopters is with know We on revenue excited are to shortly. Jim that speak track about also Mesh to shipments early of

the refer financial the top If to X, middle we'll please can Please some you to of slide. refer share Slide metrics. additional

was As Jim during gross and XX.X% mentioned, in XXXX. both margin XXXX QX

to margins, costs fixed quarter. continue gross margins product see close our manufacturing We of our XX% absorption lower QX. of remain that target during a stay revenue to but strong encouraged We tough despite experienced

continue our We increased expected cost drive improvements in drop-down improvements in and make to with that should structure revenue. margin

and EBITDA of dollars savings we by QX to gross approximately the $X of result right offset adjusted drop-down the expenses took for million during a $X.X EBITDA to QX. additional of on our actions million refer reduced cost $X.X top that $X was We primary this you million, last QX the year driver If the reduced million as The was $X slide, expenses, from employee of we in down related run year. adjusted million. graph margin operating to approximately of lower QX reduction cost in expect rate drive quarterly primarily early actions additional initiated to

we project As and our went during second successfully an Jim weekend. the Labor consolidated We quarter. U.S. live Day impactful mentioned, completed on ERP systems

inventory the improvements to our supply will management us environment will planning, also reductions. operation. efficiency We enable This and throughout to and sales in ERP allow automation one chain will enable operations the expect mature and this migration U.S.

us through profitability manage and to for going improved headwinds additional which have continue We positions market forward. reductions, made cost

our spending the focused towards on areas business. critical growth prioritizing stay of our also We for

we left, bottom show the earnings to reported and share. Moving per both loss where adjusted

but First, describe primary which on of I approximately compensation, results depreciation, drivers tables share. EPS. adjusted primary differences GAAP reconciliation these Together, by both and between all the $X.XX will noncash the differences and XX, Slide items are the in to between EPS stock continue items. to be these impacted are The $X.XX years per highlighted amortization

the a to U.K., remove which defined payment annuity former the assets the any in benefit were settled Pension incremental not funding plan annuities will of require a company. acquire employees participants and used we did QX, cash future this by the company. to for During

compared flow from year, on the noncash Our the the cash million realized driven million last in plan per by $X.XX provided declines decline included for closure the margin lower is lower quarter. refer offset on the GAAP EPS partially approximately $X.XX declined impact operating to XXXX million. the Cash drop-down to $X.X lower an loss of year. in share the the period $X.X revenue, during same largely per primarily operations operations from loss of from of graph of compared in Adjusted by pension share was impact expenses. Please middle QX gross of $X.X the bottom of This row. to the used last sales

Our at the of net net our was debt year. at slightly above QX of end end the the XXXX debt

by from of stock of additional of the the benefit $X.X HRGN were million first borrowings which last As of employee able flow XXXX. minimized for million, our half in position, the tax net helped the against cash Act. credit retention sell provided quarter, investing cash $X.X of activities. end all we included our since to also, XXXX, net And These discussed investment for to million commissions we has we our sources received $X.X our is CARES cash which cash support our of revolver in during

in previously As credit QX. agreement amended earlier our we disclosed,

discussed ability actions our operating covenants, the sufficient in ongoing current in reduction are our our we and limitation flow including plans, and the to continue operations meet operational our that our net our financials and cash months. That needs will until revenue under the to next While credit with debt from our expect for XX to borrowings ratio This annual unable limitations are facility financial XXXX. agreement. are be make revolver we cash on Based under we debt additional compliance leverage flows said, currently finance covenants due earlier, on I March performance. ongoing dependent we service available cost will our to cash and report

release to now be the reconciliation be in appendix situation. and to on presentation, we'll to close our our in this will hand keeping on eye liquidity items things in included in can Jim. am Further our found tables So the a be our available and happy back press above XX-Q. I details non-GAAP

James Green

comment and do shipment the reflect that trailing going with order the -- X-month trailing timing Jen. that I'm now happens trend between intake the an very -- you, it's and mention second on such. sale a quick a on -- I about though to months is Thank order XX there or we're just to thing exciting. first back our seeing take and growth, order and with that inflection want growth, that to Jen's

to But does now then growth. turn prime toward -- recent in during than a that gives done also while our do the a that much quarters us the -- expectations to into take we look comfort as it So start to revenue certainly, it good is for it indicator. And recent where we've few we be months job able to expect be last should -- outlook, we X-month had that look and stabilizing driven But few the on ] we'll we be products. to kind hard X-month the falling see that it's of X, predict, and situation is indicator was very now [ -- underpin at revenue our us by rate fundamental base that trend, able to that we run of see what China. to this we lately be a that for especially even key we new building with better

timing us. good very it's So for

I see strong much thing think something on be perspective, build things from a see. that really it we to can I a able the better would don't to market, I we of and predict. and but return great know certainly, call stabilizing that it's our

time do I our [ of we seen and if X, our So that introductions. Slide product want going considerable we've some progress ] -- through to discuss these -- some on to new more take go go

groundbreaking adopted expect new of part government demand This other ship of use and enable which not look commercial environment butter our row first one status measurements base customers now as part expanding in QX, X to testing. Together, and lead Early the globally late believe production neurobehavioral devices, of their sales monitoring as the large this in has response then our CROs expect telemetry we system secret this table animal real-time of part to behavioral of their from customers. customer QX, our a you concurrently housing beyond. and automated new encouraged to at base, the biopharma the and in and testing and last by the labs XXXX. Also products seeing systems If and to family we In in highlights of as of announced additional delivery bread CRO shipments expand telemetry our a these and VivaMARS on our products that starting new -- began shared additional more slide we system we business, offering. also to of are or the interest year, VivaMARS in we locations. We're in consider to expanding business. it's table, during will now now they capability initial strong initial it's VivaMARS Labcorp, preclinical XXXX customer, of our the of largest highly SoHo

table Now process the we Late our electroporation bioproduction the had second of highlights our selling in large of products a that the This targeted system high-growth year, status configured bioproduction. earnest company segment. we the bioproduction. in and the row adopted commercial to for in announced pharma electroporation BTX XXXX, began

line application. number BTX as acid for customer of with by customers consideration very million of Looking of pleased to QX, expectations. BTX now additional a commercial bioproduction in this annually status, bioprocessing new mRNA an bioproduction bioproduction the at to for in and applications. a consumable the original drugs. Also, generation drug our the system our bridge rate we from their is encouraged now to see new exploring now We're the for -- cGMP-compliant at run analyzer amino revenue This particular customer our began new $X we're shipping of also approximately use in that has it's grown

expected an is bioproduction system AAA labs and clinical around Biochrom world our currently Our to in applications. adaptation is leading of the in well do AAA operating

expect The this of QX and of handful first shipments ship in in couple another were we quarter. systems to

and of adapted highlights initially market-leading high-growth MEA the the MEA by in The acquisition to systems status our capable research organoids. well-positioned our row system disease of Mesh organoid We've supporting electrophysiology of longitudinal analysis academic industry's data third vitro in the neuro analysis see be new first these emerging platforms. of long-life systems applications. We fundamental new organoid to emerging customers table support commercial

usage testing and animal development reduce drug assessment. [ addition, CRO toxicology safety and safety companies biopharma test we for well and as model believe reduce In can as costs, streamline ] expensive and time new

academic the testing ] and for is in X expect time, organoids. a company neuro have As in of sites, commercial for advanced an California biopharma sites, Synaxys, and and Cambridge at France, in X at Michigan, of status, to focusing focusing France, viability QX. safety leading CRO longitudinal NIH with on including University cardiac and in the throughout we applications, and operations Tampere install [ University is this University toxicology operating on beta Texas,

to end biopharma early of the and by couple installed in for adopters, them we based consumable to of volume the on academics technologies new preparation revenues. each our with QX. And now and expect units out the for shipped shipments production for I'd leveraging for and As like first finally, QX larger to in XX are significantly of XXXX. ramp positioning adapting these we're recurring Mesh-chips and that have operating up in pull-through point to revenue streams biopharma well-established high applications initial higher

Okay.

look quarter. summary on to and ahead for move see fourth Slide at the and X, the we year let's the go what Now, take a

the reducing continued and market Asia more to to we're Pacific the and XXXX of delay full $XX -- year predicting conservative difficulty Given our recently, $XX million. guidance revenue approach revenue China a taking more million and recovery

bump, expect up to from There could from a though million, We from QX counting on seasonal new QX QX growth not our sequentially incremental be million on revenue to $XX it. introductions. product range $XX we're

full year margin range. gross to the We XX% expect QX the and in be to XX%

over EBITDA expect Finally, mid-teens. savings incremental margin operating in improvement margins expense, on gross increased with combined revenue QX, QX million we adjusted with an in $X the

single-digits. Thank margin math, in high to year the the doing EBITDA we you. full continue expect So

open the to for the over you. Thank questions. the operator line and I'll Now, call turn

Operator

Paul Our KeyBanc. [Operator first from comes Knight question with Instructions]

Paul Knight

all the less seeing What now Could of the CRO you are in of of we're more raised down but financing happened we here? half know I go revenue? spend, over reality they, in that like seeing down having what now we're dynamics? was And then, kind XX% XX% capital biotech CROs about company 'XX, 'XX. to again. And think

of this -- you [ are your what how big pickup? you So they see? then, does is do you in And agree? [indiscernible] see kind what this I orders, a And company? ] like Do this guess, as then

James Green

is Is revenue show think it revenue about at we at right, Jen, CRO about our split, -- I sure. I on that X/X of Sure, if look looking you're the globally. -- if the

Jennifer Cote

Yes.

James Green

It's about all to total revenue. the of been of because we bag big a our We CROs. It's mixed sell X/X -- a bit of

standard and standard. gold are We the the

tell -- a the more starts the It happening growth, little improving at described I for and QX, in expect it assessment. would that. little they second see across line, least rate think seen But us. But of big mainly production was but is it of way safety to -- more general, same their and thing and to we've of like we board, said with their there. run we see Charles the Some a CROs to what return kind drug see confusing River exactly was -- the QX, they've and more gone normalized of certainly, the half their in see not They new normalized actually for and in output. to a certainly last demand call, QX, in we us look hard certainly, a publicly they

that You're throughout a biopharma, have slowed pharma that's big of certainly I continuing. series have some we that if of that And biotech that know we had But down. right know the seen about belt. They the their tightening think big layoffs of company companies. the been they've the don't out has year. -- we

about do -- going to are to some are that companies reimbursements because look -- lot how questions every their see X whether a and with do tend such. have we the Our like There to pricing and about with thought was years. pharma they election

business. in quarters. as to well. always you'll at X, quarters. the look seeing also doing is seems last Slide few half uptick -- for the there seems pretty outlook at we're seems -- is one presentation, it's noise in. very pretty our we're So said, to least look longer-range rate company a you be to be trending -- of bit if It pretty be the last little Americas, our business general, X at there. But a running stable slide -- And flat, the pretty stable been Jen pharma the to X-month the EMEA, X order of our as as comes which in that kind we And for see in And the in

nice of So they certainly, -- and general, seem companies single, expect of all buying we're this market to and my incremental more flat, to here market. be be designed to with very -- saying, holding the and across are base should I when products been to new base everybody so seem see maybe an close the biotechs return. What us new nice on expecting return run we growth that our QX. in though, in if double-digit growth And incremental really kind while is to XXXX a that real stable those inflection these growth. to is base and business high these is And our to we'll now the whatever we underpin nice, mean we're the have on give see, rate the tired looking believe at our have how our order these lot moving pretty we that's selling, on breath expect and products And drive of X is to doing equipment. some run really be the very in I've this business on seems is. okay a doing They're is can starting new pharma to start how a areas. good the of positive, basis are stable actually you products. they -- to as build to

academic been we The with been and has hearing. the stabilizing of piece few where demand tell of though, kind forward China seeing budgets and the expecting the it's specifically seem -- the big I it's doing biopharma be the how It the word little think seem quarters stable. a We been that's for you, And That's tough. been better. in really last it. China the recover So did see to has it's one we're to really reductions we're that do looking in -- that row. pharma, now. a the that that -- CRO that will we're

of CRO go course, China. the and going budgeting we're things us pharma to -- new will cycle with and of well We the there start side are with that improve that have hoping to

us. everybody We all got growth, stable see to up the CROs. doing though, again, So loosening kind seem fine. now, big of how doing that's going of seen said, going to again, for And has And think at be this -- -- to we've least a not XXXX. pharma business outlook is tightening and we'll but for positive

So what meantime, lean. to we're going the we're that's kind run of hoping. In

make You of we'll business essentially sure comes, very what a on quarter, low like how solid. can the run to the leverage the it adjusted size even growth see how to And to And is our self-funding. that's as and we run. operating be that. we I That's business, have. that the We've we size

-- we or to could new growth would EBITDA I dollar would so and a -- expect certainly drops line of mean, So every the I then on. we dollar $X.XX --

delivering into optimistic doesn't we the we're as which somewhat -- to back on plan it growth -- pretty we're line. fast, still QX, come So move of want -- even this we're we're sure And course, want if slighter we're that XXXX. but be we to it bottom even better, of -- about overall, really projecting could make for just --

Paul Knight

can should high kind what of kind Slide products. double-digit And be Mesh new and Or saying guess people promise of big single-digit most growers. there. understand revenue? I at businesses? these are have you're MEA, And those on you Jim, saying percent That's of electroporation range those looking you're think on How then the X, can there? talk growers, you I to

James Green

at market adding the given to pretty the and look guess market I I business, at that where products stable, the Yes. -- way new much where business, -- base I the business expect to technology, is. assuming base is base new it, the the that run we're

Now know we heavily to you more side. are equipment exposed the

downturn and something saw last hit -- more lot year over so companies tended the the than to recurring spend, or what is that there revenue. of we a or reduction with equipment in if So had that

with think So new the is base essentially developing. -- But is products, market to going we these align with the how

think For be us, we that's going at stable. to least

overall and about electroporation systems this ] is the and design bioproduction. bioproduction, XX% a have business. That's drug. of to of -- then connected now bioproduction somewhere maybe [ they're -- question The use [ new use it they the our And Your that specific the with ] they'll is revenue for neighborhood that because new. electroporation, for to electroporation opportunity us our and growth. concept of a in It's is combination they'll -- mean segment again,

solid a better have to certainly in that range segment. growth that vector, expect We or nice for XX% the

our that couple more points adding we to business. be a or would So of to expect overall

Today, Mesh MEA at it's to disappointed -- this we of it's arguably the $X in -- fast It's today MEA add story. or growth million electroporation This XX% expect of neighborhood type to $X growing if and in million be it's $X the historically another million, compound even business. be This XXX%. This $X or X-plus didn't -- Now, million I systems. could maybe again, expect X I'd and of adoption. a better seeing and CAGR, we're electrophysiology than is in -- total be -- the points is again, about would

be here systems each million they biotissue of the just $XXX are chips. essentially designed know starting to a putting adopters. just essentially. systems, in a you million see with consumption in even -- substantial XX the quarter these $XX We'll -- can revenue recurring system. And You here of within these fourth they're for about the early fourth also And

growth it's for and capability. business production. buying and this but sometimes serious be interested -- of is go exploring for this early here. can to fabulous into of business ramping And specifically, up from who's this that you growth a grower and who should would the multiple And a each for purely expecting see driver this We can't And the positioned be big our who a the we're -- big and is definitely is we adopters biopharma new as name introduction incremental So see again this. going to the technology. We're points I this. and of year. be see I go the forward but biotechs companies rate opportunity definitely expanding on

Paul Knight

Do a And then last of you fair? side of evaluate around see what rate growth is you core X.X% [ like -- services on my that's standard would the ], be rate. low what think I growth kind which guess, have, single-digit kind biopharma R&D

James Green

Yes.

of that's looking certainly in base we're the of be now, But to all at mid-single-digits years. that stabilized a that, things though we -- lower would low we think, to I rate. kind even assuming yes, kind sitting in have expect normalized

be able revenue-based out applications much and in to strategy, test past. higher to consumable recurring with been adapt do are in you'll consumable them, customers new and one them to areas. recurring new start biopharma the notice at drive And each So That's that's adapt why the we've than also in tended technologies, targeted more much rate to volume, research and areas substantially these that that I of CROs. really look base high-growth these like revenue our academic then higher our to them

Operator

comes The Our from Jackson next Benchmark with question Company. Bruce

Bruce Jackson

happen. of to ongoing in going what's an trying So terms get I'd been China. like back issue to like has to your comments This of to predict about kind

to the keeping get give worse? eye think you that And So us that why of is, stabilizing. it's indicators market this you some question on? you couldn't maybe My could you're an

James Green

with we're certainly given overall, hadn't positive we've election. on and no that budgets -- just and never hearing that hearing ] our and being the China, that political by the And their there folks election getting we've the some could again, primarily through -- with thing that for issues was situation through the seen question what that business, side, knife mean, know of China I China, driven But the now worse. our they a set there stabilizing seen stability there get there's is was be the almost kind you No, the first Yes. could falling research, actually all -- news happened. up that, in in it academic the just [ China -- there we're from our

actually of cellular unique And Now -- in we've in you seen everybody products that It's where, that long technologies growth. have an that and level have selling academic-oriented it if if it we some to aren't you're have the That's such. the returning knows area as reverse. We've know, more also you there. you can a commoditized, for going product you're technology. probably to be China seen

products drug focus Western -- they development be have want kind property to the targets. to [ they in intellectual world and power, ] able compete need with to to pricing really want want we do on be the these they edge technological, and with able that So technology this because of new

with pretty being there's -- some as but we than coming QX erosion. But we if least was where was outlook modest ] the rates purchasing we further has orders been -- is quarter it last are What this China, forward. see and there the hurting start there we least in, including do we're QX, see grow has great, we at up, slight China, in the some stable. of where over have and But a think to off quarters further the are stabilized. pharma they're of we saw that last level is quarters, back over will ones stable, stability some China. falling. But of saw further who really QX, academic availability and to, And companies we [ ] we the a and been So else erosion. get going ] growth piece, we think, [ then few not few quote and again, we pulled think, [ Maybe which capital the and it's at at CROs really good there. Everything last better seen, so delayed some in

going and not these So and go we're that's to If for just know they XX% We're the numbers, us. the it's of starting to off this I of And our focus want we starting resolved. going quote rate. opportunity to kind is I get want see back there. do they're of we But organoid to see business to budgets lower we'll work, of are technologies to lot growth think have -- would our that into that going think to if they us. they interest say we -- -- a think get stable that on again. to come a seeing do great China to

think we're stable. -- no, we to So it's going least be at

your question. don't if So answers that know I

Bruce Jackson

Yes, [ ] that's surely helpful.

question I have MEA order patterns for organoids. The other the Mesh is around the and

XXXX? might order like look So what then what's I'm getting it? shipping between the lift an just to of the in time lag trying kind gauge and

James Green

make solid. fairly to to sure all $X testing. I a start really demand. fast. to amount We is that new up I to But have we data meets be We make and put these able of sure very it the well. you if indications going want we actively testing could we site I the $XXX,XXX, system growth. bet quarter applications the system beta -- costs get have make because if early the to we we've ramping are adopters The can sure we'd it somewhere easily in you to in a mean, the place $X through consumable the this, that now mean, -- The early scarce you million -- a reliable systems, something million of you with this might now product site have I quite the meet same that be adopters. to kept demand. get terms expect like with beta and close put I want going Well, the we The a in, can forward. get And are of is

terms how so ramp? really again, like number now in the setting of question, -- testing, something by as of to when biopharma story we now, your we this start revenue. But put safety assessment consumable. not But these the could are as Right type consumable Now we're need companies whole But that the this of fairly base will product fast at tend different looking able production, you now to be a into we or could limited we're have up far can biochips ten-fold. -- the you make. we're as academics quarter, ratio to to second much up into the ramp that

But, whether be -- careful getting and systems be with ramp have the with just organoids. systems we've how allow not happy or not been many this really MEA with -- that ability equipment until ship produce. The now years, to it is operations themselves and we to will Now an I'd up again, can for these we of now existing to work ten-fold. for be we different customization really to system a is to that -- long-life enough making

not this. that's to now It's chip based a -- activity and semiconductor well-known MEA And Mesh that's it's is is chip, this as So really it or system. like the tissue type But system. is it's the really it's new system a that this anything, a brand-new about -- consumption. adapted

your dice somebody out most work, the have to to kind of foundry silicon I've chip things it my been products past then your it So the -- onto onto you device. -- bump contract you in where consumable with system with and contract it's done to the it that's going a of with and similar for

get a we month on limit us. So we chips time has and get do this point where certainly, let's there. I to quarter to be know But think then to going growth going the year, say, to how for there big make, but this. driver can next to XX second as a from is don't from, a into how XXX the be opportunity to many to you're there's I the

Operator

like closing for Jim remarks. I'm to Green, call CEO, the showing back no questions. over turn to further I'd

James Green

very you much Thank thank much, day. presentation. Well, for March in you our you. Okay. have fiscal join for us today's quarter We so joining you ends a good for results and us XXXX. hope today. fourth Thank This

Operator

the does This you. Thank conclude program.

disconnect. now day. Good may You

Harvard Bioscience (HBIO) 7 Nov 242024 Q3 Earnings call transcript