Navigation Links
Abaxis Reports Financial Performance for the First Quarter of Fiscal 2009
Date:7/24/2008

UNION CITY, Calif., July 24 /PRNewswire-FirstCall/ -- Abaxis, Inc. (Nasdaq: ABAX), a medical products company manufacturing point-of-care blood analysis systems, today reported financial results for the first fiscal quarter ended June 30, 2008.

Quarterly highlights include:

-- Revenues of $24.6 million, up 7% over last year's comparable quarter.

-- Total sales of chemistry and hematology analyzers of 804 units, up 127

units or 19% over last year's comparable quarter.

-- Vetscan chemistry analyzer sales of 415 units, up 25% over last year's

comparable quarter.

-- Medical chemistry analyzer sales of 208 units, up 18% over last year's

comparable quarter.

-- Medical reagent disc sales of 404,000 units, up 47% over last year's

comparable quarter.

-- Average selling price of medical and veterinary reagent discs of

$11.90, a new record, up $0.08 over last year's comparable quarter.

-- Medical market sales of $6.5 million, up 36% over last year's

comparable quarter.

-- U.S. government sales of $1.4 million, up 105% over last year's

comparable quarter.

-- Total sales in Asia of $892,000, up 27% over last year's comparable

quarter.

-- Cash, cash equivalents and short- and long-term investments as of

June 30, 2008 of $61.6 million, compared to $49.5 million as of

June 30, 2007.

Quarterly Results: For the fiscal quarter ended June 30, 2008, Abaxis reported revenues of $24.6 million, as compared with revenues of $22.9 million for the comparable period last year, an increase of 7 percent. Instrument, reagent disc and hematology reagent revenues increased by an aggregate of $1.9 million, or 10 percent over the same period last year. The company reported net income of $2.8 million, compared to $3.1 million for the same period last year. The company's effective tax rate in the first quarter of both fiscal 2008 and 2009 was 38 percent. The company reported diluted net income per share of $0.12 (calculated based on 22,398,000 shares) in the first quarter of fiscal 2009, compared to $0.14 per share (calculated based on 22,102,000 shares) for the same period last year.

Other Reported Information: Reagent disc and hematology reagent revenues for the first quarter of fiscal 2009 were $14.9 million, up 4 percent over the $14.3 million reported in the same period last year. During the quarter, the company sold a total of 1.2 million units of medical and veterinary reagent discs, an increase of 4 percent compared to a total of 1.1 million units of medical and veterinary reagent discs sold during the same period last year. Medical sales in North America, excluding sales to the U.S. government, during the first quarter of fiscal 2009 were $4.4 million, an increase of 19 percent over last year's comparable quarter. Total sales in the medical market for the first quarter of fiscal 2009 were $6.5 million, an increase of 36 percent over last year's comparable quarter. Total sales in the veterinary market for the first quarter of fiscal 2009 were $16.6 million, substantially the same as in the comparable period last year. Additionally, veterinary reagent disc sales for the first quarter of fiscal 2009 were $10.4 million, a decrease of 6 percent compared to the same period last year.

The company ended the quarter with $61.6 million in cash, cash equivalents and investments. As of June 30, 2008, the company had a total of $7.0 million in short-term investments and $31.6 million in long-term investments, which long-term investments consisted of investments in auction rate securities. Unrealized gains and losses, net of related income taxes of $1.3 million, are temporary and reported as a component of accumulated other comprehensive loss.

Clint Severson, chairman and chief executive officer of Abaxis, commented, "The slow economy did have a negative effect on our veterinary reagent disc business. While the comparisons over the first fiscal quarter last year were difficult due to increased veterinary reagent disc sales because of the pet food scare and the fact we announced a price increase in the last quarter of fiscal 2008, clearly the economy has been a drag on our veterinary consumable sales. The good news is that our Vetscan chemistry analyzer sales increased by 83 units or 25% over last year's comparable quarter. Improving product quality and the fact that a Vetscan chemistry analyzer can make a veterinary practice more efficient in a difficult economy are two reasons for the increase."

Mr. Severson continued, "Our medical business continues on a strong growth path. In conjunction with our distribution partners, we are seeing enthusiastic acceptance of our products on a nationwide basis throughout the medical community. With our veterinary business poised to resume its more historical sales track, we look forward to improved operating and financial results in the coming quarters."

Conference Call

Abaxis has scheduled a conference call to discuss its results at 4:15 p.m. Eastern Time on July 24, 2008. Participants can dial (877) 356-5706 or (706) 643-0580 to access the conference call, or can listen via a live Internet web cast, which is available in the Investor Relations section of the company's website at http://www.abaxis.com. A replay of the call is available by visiting http://www.abaxis.com for the next 30 days or by calling (800) 642-1687 or (706) 645-9291, access code 50736212, through July 27, 2008. This press release is also available prior to and after the call via Abaxis' website or the Securities and Exchange Commission's website at http://www.sec.gov.

About Abaxis

Abaxis develops, manufactures and markets portable blood analysis systems for use in any veterinary or human patient-care setting to provide clinicians with rapid blood constituent measurements. The system consists of a compact, 5.1 kilogram (11.2 pounds), portable analyzer and a series of single-use plastic discs, called reagent discs that contain all the chemicals required to perform a panel of up to 13 tests on veterinary patients and 14 tests on human patients. The system can be operated with minimal training and performs multiple routine tests on whole blood, serum or plasma samples. The system provides test results in less than 12 minutes with the precision and accuracy equivalent to a clinical laboratory analyzer.

Use of Non-GAAP Financial Measures

To supplement its financial statements presented in accordance with United States generally accepted accounting principles (GAAP), Abaxis uses operating income per share. This non-GAAP financial presentation is not a measurement of performance under GAAP in the United States of America. Management uses this measure in comparing Abaxis' operating results with historical performance and believes it provides meaningful and comparable information to management and investors to assist in their review of Abaxis' performance relative to prior periods and its competitors.

This press release includes, and our conference call will include, statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Abaxis claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," "anticipates," or words of similar import, and do not reflect historical facts. Specific forward-looking statements contained in this press release or in our conference call may be affected by risks and uncertainties, including, but not limited to, those related to the market acceptance of the company's products and the continuing development of its products, required United States Food and Drug Administration clearance and other government approvals, risks associated with manufacturing and distributing its products on a commercial scale free of defects, risks related to the introduction of new instruments manufactured by third parties, risks associated with entering the human diagnostic market on a larger scale, risks associated with liquidity concerns related to our auction rate securities, risks related to the protection of the company's intellectual property or claims of infringement of intellectual property asserted by third parties, predictions related to growth in the United States economy, risks involved in carrying of inventory and other risks detailed from time to time in Abaxis' periodic reports filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements were made. Abaxis does not undertake and specifically disclaims any obligation to update any forward-looking statements.

ABAXIS, INC.

Condensed Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

June 30,

2008 2007

Revenues $24,572 $22,931

Cost of revenues 11,069 9,915

Gross profit 13,503 13,016

Operating expenses:

Research and development 1,997 1,653

Sales and marketing 5,827 5,229

General and administrative 1,662 1,651

Total operating expenses 9,486 8,533

Income from operations 4,017 4,483

Interest and other income (expense), net 462 499

Income before income taxes 4,479 4,982

Income tax provision 1,703 1,884

Net income $2,776 $3,098

Net income per share:

Basic net income per share $0.13 $0.15

Diluted net income per share $0.12 $0.14

Shares used in the calculation of net

income per share:

Weighted average common shares

outstanding - basic 21,735 21,311

Weighted average common shares

outstanding - diluted 22,398 22,102

ABAXIS, INC.

Condensed Balance Sheets

(Unaudited and in thousands)

June 30, March 31,

2008 2008

Current assets:

Cash and cash equivalents $23,031 $17,219

Short-term investments 6,991 6,991

Trade receivables, net 20,952 20,873

Inventories, net 18,358 18,657

Prepaid expenses 1,190 427

Net deferred tax asset - current 2,760 2,426

Total current assets 73,282 66,593

Long-term investments 31,559 35,463

Property and equipment, net 14,727 14,599

Intangible assets, net 356 375

Other assets - 5

Net deferred tax asset - non-current 3,855 3,868

Total assets $123,779 $120,903

Current liabilities:

Accounts payable $4,808 $6,421

Accrued payroll and related expenses 3,447 4,277

Other accrued liabilities 1,209 1,369

Deferred revenue 875 807

Warranty reserve 1,108 1,219

Total current liabilities 11,447 14,093

Non-current liabilities:

Deferred rent 251 286

Deferred revenue 1,409 1,146

Warranty reserve 1,007 729

Total non-current liabilities 2,667 2,161

Shareholders' equity:

Common stock 111,188 109,031

Accumulated deficit (191) (2,967)

Accumulated other comprehensive loss (1,332) (1,415)

Total shareholders' equity 109,665 104,649

Total liabilities and shareholders' equity $123,779 $120,903

Non-GAAP Operating Income Per Share

(In thousands, except per share data)

Three Months Ended

June 30,

2008 2007

Shares used in the calculation of

operating income per share

(non-GAAP):

Weighted average common shares

outstanding - basic 21,735 21,311

Weighted average common shares

outstanding - diluted 22,398 22,102

Non-GAAP operating income per share - basic $0.18 $0.21

Non-GAAP operating income per share - diluted $0.18 $0.20

Revenues by Geographic Region

(In thousands)

Three Months Ended

June 30,

2008 2007

North America $20,295 $19,169

International 4,277 3,762

Total revenues $24,572 $22,931

Revenues by Customer Group

(In thousands)

Three Months Ended

June 30,

2008 2007

Medical Market $6,529 $4,807

Veterinary Market 16,613 16,436

Other 1,430 1,688

Total revenues $24,572 $22,931


'/>"/>
SOURCE Abaxis, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Abaxis to Present at the Sidoti & Company Sixth Annual San Francisco Institutional Investor Forum Conference
2. Abaxis CEO Clint Severson Named Entrepreneur of the Year by Forbes Magazine
3. Abaxis to Report Third Quarter Fiscal 2008 Financial Results Thursday, January 31, 2008
4. EpiCept Reports Expansion of Clinical Development For Licensed Cancer Compound
5. QMed, Inc. Reports July Medicare SNP Enrollments
6. Phlo Affiliate Reports Expanded Coverage to Oregon Border
7. Healthcare Technologies Reports Loss for 2007 Second Quarter & Six Months Results
8. Dragon Pharmaceutical Reports Growth in Sales and Profits during Second Quarter of 2007
9. Carrington Reports Second Quarter 2007 Results
10. Avitar Reports Third Quarter Financial Results for Fiscal 2007
11. Response Genetics Reports Second Quarter 2007 Financial Results
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/11/2016)... Germany and GERMANTOWN, Maryland ... ; Frankfurt Prime Standard: QIA) today announced the introduction ... for gene expression profiling, expanding QIAGEN,s portfolio of Sample ... enable researchers to select from over 20,000 human genes ... interactions between genes, cellular phenotypes and disease processes. ...
(Date:2/11/2016)... ... February 11, 2016 , ... ... to delivering cutting-edge information focused on the development and manufacture of biopharmaceuticals ... a premier sponsor of the 2016 BioProcess International Awards – Recognizing Excellence ...
(Date:2/11/2016)... ... February 11, 2016 , ... Reichert Technologies, ... continues today to pursue the highest level of accuracy and quality with the ... Refractometer and the AR5 Refractometer. Accurate, reliable and tough enough for the ...
(Date:2/10/2016)... WASHINGTON , February 10, 2016 Early-career ... , Peru , Uganda ... their life-enhancing work in health and nutrition   Indonesia ... Uganda and Yemen are ... sciences and epidemiology. They are also celebrated for mentoring young women scientists ...
Breaking Biology Technology:
(Date:1/22/2016)... 22, 2016 ... of the  "Global Behavioral Biometric Market ... --> http://www.researchandmarkets.com/research/4lmf2s/global_behavioral ) has announced ... Biometric Market 2016-2020"  report to their ... Markets ( http://www.researchandmarkets.com/research/4lmf2s/global_behavioral ) has announced the ...
(Date:1/21/2016)... --> ... report "Emotion Detection and Recognition Market by Technology (Bio-Sensors, NLP, ... Voice Recognition and Others), Services, Application Areas, End ... published by MarketsandMarkets, the global Emotion Detection and ... Billion by 2020, at a CAGR of 31.9%, ...
(Date:1/20/2016)... 2016   MedNet Solutions , an innovative SaaS-based ... clinical research, is pleased to announce the attainment of ... the result of the company,s laser focus on (and ... , it,s comprehensive, easy-to-use and highly affordable cloud-based technology ... Key MedNet growth achievements in 2015 include: ...
Breaking Biology News(10 mins):