UNION CITY, Calif., July 24 CA-Abaxis-Earnings
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 revenues11,069 9,915
Gross profit13,50313,016
Operating expenses:
Research and development 1,997 1,653
Sales and marketing5,827 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 21,73521,311
Weighted average common shares
outstanding - diluted22,39822,102
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 20,95220,873
Inventories, net 18,35818,657
Prepaid expenses1,190 427
Net deferred tax asset - current2,760 2,426
Total current assets 73,28266,593
Long-term investments 31,55935,463
Property and equipment, net14,72714,599
Intangible assets, net356 375
Other assets - 5
Net deferred tax asset - non-current3,855 3,868
Total assets $123,779 $120,903
Current liabilities:
Accounts payable $4,808$6,421
Accrued payroll and related expenses3,447 4,277
Other accrued liabilities 1,209 1,369
Deferred revenue 875 807
Warranty reserve1,108 1,219
Total current liabilities11,44714,093
Non-current liabilities:
Deferred rent 251 286
Deferred revenue1,409 1,146
Warranty reserve1,007 729
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 21,73521,311
Weighted average common shares
outstanding - diluted22,39822,102
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
International4,277 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 16,61316,436
Other1,430 1,688
Total revenues $24,572 $22,931
SOURCE Abaxis, Inc.
