Chane Graziano, HBIO's CEO , commented, "Revenues in the first quarter were disappointing as we saw delays in spending due to sequestration cuts in the U.S. We believe this is a short term issue since both houses of Congress appear to agree on the importance of scientific research. Historically, we have seen an increase in spending once government budgets are approved. Although revenues were down 8% in the first quarter compared with the first quarter of 2012, and were below our expectations, the negative comparison was not as severe as it might appear since the first quarter last year was a record quarter with strong organic growth in our life science research tools business. Therefore, it was a difficult year-to-year comparison. In view of these facts we do not expect to see a decline in revenues for the full year of 2013 in our core business and we expect to see an increase in operating profits for the year based on the operational improvements we have made."
Mr. Graziano continued, "As per our announcement released last evening, I wish to confirm our intention to separate our HART business from HBIO, list the HART shares on the NASDAQ exchange and dividend those shares to the HBIO shareholders. Once this is complete we will give more detailed guidance on HBIO for the year. Additionally, as we move to complete this separation of HART from HBIO we are once again actively pursuing our acquisition strategy to acquire product lines or companies that are complementary to our base business and leverage our infrastructure, which will be key to achieving our long term goal of growing revenues and profits by 15%-20% per year."
Operating Results for Continuing Operations
Three months ended March 31, 2013 compared to three months ended March 31, 2012:Revenues decreased $2.2 million, or 7.9%, to $26.1 million for the three months ended March 31, 2013 compared to $28.3 million for the same period in 2013. Our acquisition of AHN contributed approximately $0.3 million to first quarter 2013 revenues. The effect of a stronger U.S. dollar decreased the Company's first quarter revenues by $0.1 million, or 0.3%, compared with the same period in 2012. Adjusting for the effect of foreign currency fluctuation and acquisitions, revenues were down $2.4 million, or 8.5%, year-to-year. The organic revenue decline was concentrated in our Harvard Apparatus, Biochrom, and Hoefer businesses.