Harvard Bioscience Inc., Q2 2008 Earnings Call Transcript

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2008-08-12 11:51:16.0

Tags: Harvard Bioscience Inc.

Question-and-Answer Session

Operator

(Operator Instruction)

Our first question comes from the line of [Jay Jacobs]. Please proceed.

Jay Jacobs - Analyst

Yes, hi. Question with respect to increasing the visibility of the company going forward. Clearly you are meeting your benchmarks and your stated expectations. To what degree is the Company making efforts to attend conferences, get to know the community – re-address the community and increase sponsorship?

David Green

Hi, Jay. This is David. As you probably know, I do a lot of the road shows and conferences on behalf of the company. And I think this year I have actually done more -- more meetings one-on-one meetings with fund managers than probably in any previous year. There are also conferences coming up which I expect to attend later in the year. Part of our overall plan in addition to putting together the growth plan which we just reviewed so far and that we are on track both for this year and the long-term growth plan, was also to increase the visibility of the company through putting more effort into the Investor Relations programs. So, those two really do go hand in hand. Yes, we think we have really turned the corner with the Company in terms of the operating performance now, but we are on a much better growth track. I don't think we are getting recognized for that yet. And that's why we want to go hand-in-hand with the results, an increased effort on Investor Relation.

Jay Jacobs - Analyst

Great. Thank you.

Operator

Our next question comes from the line of Kelly Cardwell from Central Square Capital. Please proceed.

Kelly Cardwell - Central Square Capital

Hi, guys. How are you?

Chane Graziano

Fine.

Kelly Cardwell - Central Square Capital

Hi. Just could you give us a little bit more clarification on the backlog number and the conversion into revenues in the second half? It looks like -- I mean obviously there is a low end for your guidance for Q2, but you are still comfortable for the full year. I just wanted to get a little more color in terms of how that translates. It sounds like bookings were in line, but maybe you just didn't get to recognize it.

Chane Graziano

Yes, actually bookings growth was very strong in the first half of the year. And that was both at Panlab and at the rest of the business too, particularly strong in the Biochrom spectrophotometry business. So we go into the second half of the year with over 7 million in backlog, which is an increase of 4 million from the same point in 2007. So I think you can see from that, we think all of that increase in backlog is shippable between now and the year end. So we expect that that will turn into revenue growth by the year end. Obviously, the revenue growth is what we actually count as organic growth. So by the year end, we think we will be reporting somewhere in the range of 5% to 6% organic growth for the full year. And I think that really marks the turn-around from the prior year we showed -1% to 8% the year before that. We didn't really get back onto that track that we talked about, getting to 5% to 10% organic growth plus the 10% to 15% from acquisitions -- chances of little bit operational improvements giving us a 20% to 25% overall growth in earning per share.

 

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