The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with the Unaudited Interim Consolidated
Financial Statements included herein.
Our interim consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America.
Operating results for the three and six months ended June 30, 2021 are not
necessarily indicative of the results to be expected for the full year ending
December 31, 2021.
Changes in local currency exclude the effect of currency exchange rate
fluctuations. Local currency amounts are determined by translating current and
previous year consolidated financial information at an index utilizing
historical currency exchange rates. We believe local currency information
provides a helpful assessment of business performance and a useful measure of
results between periods. We do not, nor do we suggest that investors should,
consider such non-GAAP financial measures in isolation from, or as a substitute
for, financial information prepared in accordance with GAAP. We present non-GAAP
financial measures in reporting our financial results to provide investors with
an additional analytical tool to evaluate our operating results.
We also include in the discussion below disclosures of immaterial qualitative
factors that are not quantified. Although the impact of such factors is not
considered material, we believe these disclosures can be useful in evaluating
our operating results.
The ongoing coronavirus ("COVID-19") pandemic has resulted in millions of
confirmed cases throughout the world and in all countries where we conduct
business. The outbreak caused many governments to implement stay-at-home orders,
quarantines, and significant restrictions on travel. During the course of the
ongoing pandemic, several governments implemented work restrictions that
prohibited many employees from going to their customary work locations and that
required these employees to work remotely when possible. These restrictions
continue to change as the COVID-19 situation evolves in each country and region,
considering local circumstances related to vaccine availability, population
vaccination rates, and emerging variant strains of COVID-19.
The health and safety of our employees and business partners have been our
highest priority throughout the COVID-19 pandemic, and we have implemented
several preventative and protective measures. We have also continued to support
our customers with their essential businesses such as life sciences, food
manufacturing, chemicals (e.g., sanitizers, disinfectants, soaps, etc.), food
retail, and transportation and logistics.
Our production and logistics facilities are currently operational, and our
office-based employees continue to adhere to any applicable jurisdictional
stay-at-home orders. Our supply chain is currently continuing with some
interruption. We continue to closely monitor risks associated with our supply
chain, including the availability of certain components, material shortages,
supplier delays, potential transportation delays, and higher transportation and
material costs, which could significantly adversely affect sales and/or
profitability in future quarters. We also continue to leverage our digital and
remote sales and service capabilities in certain geographies where necessary,
while also meeting delivery requirements with our global supply chain. Our
service organization also continues to provide on-site and remote customer
support to facilitate uptime, productivity, and regulatory compliance.
COVID-19 presents several risks to our business as further described in Part I,
Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.
Uncertainties related to COVID-19 and the resulting impact to the global economy
continue in most regions of the world
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and market conditions can change quickly. The longer-term effects on our
business will be impacted by the global economy and any economic implications in
different regions of the world.
Results of Operations - Consolidated
The following tables set forth certain items from our interim consolidated
statements of operations for the three and six month periods ended June 30, 2021
and 2020 (amounts in thousands).
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