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Harvard Bioscience plans to divest Capital Equipment business.

Holliston, MA 7/27/05--Harvard Bioscience has announced that it plans to divest its Capital Equipment business, which includes its Genomic Solutions, GeneMachines, Cartesian Dispensing Systems, MAIA Scientific and Union Biometric brands, and is currently is engaging an investment bank to assist in the process. To review whether the Capital Equipment business meets the criteria of "held for sale" accounting treatment, the company has postponed its second quarter earnings release scheduled for July 28 to August 4. Harvard stated that the business did not meet expectations in the second quarter and that it expects to record significant impairment charges related to goodwill and other intangible assets in the second quarter. It also expects to record significant charges within the Capital Equipment business related to restructuring activities.

In 2004, Harvard Bioscience's Capital Equipment business sales fell 21.0% to $27.8 million to account for 30% of total revenues. Harvard Bioscience's operating profit declined 42.8% (see IBO 3/31/05). In 2004, four products lines (the COPAS flow cytometer, MIAS automated microscope, Genomic Solutions microarray products, Cartesian Nanolitre dispensers) accounted for 70% of the Capital Equipment's revenues, according to a 2005 investor presentation. The business was largely created through the acquisition of distressed product lines. Last year, the Genomic Solutions unit was reorganized following a significant decline in sales and an operating loss (see IBO 7/31/04).
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Comment:Harvard Bioscience plans to divest Capital Equipment business.
Publication:Instrument Business Outlook
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 31, 2005
Words:228
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