UNION CITY, Calif.,
Oct. 26 /PRNewswire-FirstCall/ --
ABAXIS, Inc. (Nasdaq: ABAX), a medical products company
manufacturing point-of-care blood analysis systems, today reported
financial results for the fiscal quarter ended September 30, 2010.
Record quarterly highlights include:
- Revenues of $35.3 million, up 17%
over last year's comparable quarter.
- North America revenues of
$29.5 million, up 19% over last
year's comparable quarter.
Other quarterly highlights include:
- Net income of $3.7 million, up
17% over last year's comparable quarter.
- Total medical and veterinary instrument sales of $7.6 million, up 17% over last year's comparable
quarter.
- Veterinary market sales of $26.6
million, up 23% over last year's comparable quarter.
- Medical market sales of $6.9
million, up 8% over last year's comparable quarter.
- Total medical and veterinary reagent disc sales of $19.3 million, up 6% over last year's comparable
quarter.
- Cash, cash equivalents and investments as of September 30, 2010 of $100.6 million, compared to $87.6 million as of September 30, 2009.
Quarterly Results: For the fiscal quarter ended
September 30, 2010, Abaxis reported
revenues of $35.3 million, as
compared with revenues of $30.3
million for the comparable period last year, an increase of
17 percent. Revenues from instrument sales, which
include chemistry analyzers, hematology instruments, coagulation
analyzers and i-STAT analyzers, increased by an aggregate of
$1.1 million, or 17 percent, over the
same period last year. Total medical and veterinary
instrument sales were 988 units, up 7 percent over the same period
last year. Revenues from consumables, which include reagent
discs, hematology reagent kits, coagulation cartridges, i-STAT
cartridges and heartworm rapid tests, increased by an aggregate of
$4.3 million, or 21 percent, over the
same period last year. The company reported net income
of $3.7 million for the fiscal
quarter ended September 30, 2010,
compared to $3.2 million for the same
period last year. The company's effective tax rate in
both three-month periods was 39 percent. The company
reported diluted net income per share of $0.17 (calculated based on 22,691,000 shares) for
the three-month period ended September 30,
2010, compared to $0.14 per
share (calculated based on 22,574,000 shares) for the same period
last year.
Six-Month Results: For the six-month period ended
September 30, 2010, Abaxis reported
revenues of $70.2 million, as
compared with revenues of $59.9
million for the comparable period last year, an increase of
17 percent. Revenues from instrument sales increased by
an aggregate of $2.1 million, or 17
percent, over the same period last year. Total medical
and veterinary instrument sales were 2,013 units, up 14 percent
over the same period last year. Revenues from
consumables increased by an aggregate of $8.7 million, or 21 percent, over the same period
last year. The company reported net income of
$7.3 million, compared to
$7.0 million for the same period last
year. The company's effective tax rate in the six-month
period ended September 30, 2010, was
39 percent, compared to 40 percent for the same period last
year. The company reported diluted net income per share
of $0.32 (calculated based on
22,736,000 shares) for the six-month period ended September 30, 2010, compared to $0.31 per share (calculated based on 22,492,000
shares) for the same period last year.
Other Reported Information: Consumables revenues
for the second quarter of fiscal 2011 were $25.3 million, up 21 percent over the
$21.0 million reported for the same
period last year. Total sales in the medical market for the
second quarter of fiscal 2011 were $6.9
million, an increase of 8 percent compared to the same
period last year. Medical sales worldwide, excluding sales to
the U.S. government, during the second quarter of fiscal 2011 were
$6.0 million, an increase of 7
percent compared to the same period last year. Total sales in
the veterinary market for the second quarter of fiscal 2011 were
$26.6 million, an increase of 23
percent compared to the same period last year. Veterinary
reagent disc sales for the second quarter of fiscal 2011 were
$14.8 million, an increase of 8
percent compared to the same period last year. Non-cash
compensation expense recognized for share-based awards during the
second quarter of fiscal 2011 was $1.1
million, compared to $1.4
million for the same period last year.
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "On a year-over-year
basis revenues and net income for the quarter were both up 17%, led
by a 23% increase in veterinary market revenues and a 38% increase
in the number of Piccolo chemistry analyzer units sold in the
medical market compared to last year's second quarter. We
also achieved strong growth in consumables sales of 21% for the
quarter. We are very pleased with the traction that we are
gaining across our various markets. A strong focus on more
effective sales and marketing efforts across all of our platforms
has driven those gains."
Mr. Severson continued, "We are also very pleased that our
razor/razorblade model continues to deliver outstanding results;
72% of our quarterly revenues are recurring and we believe that
there is still headroom to drive this percentage higher in the
coming years. In that regard, we believe that the substantial
increase in the number of medical instruments placed in urgent care
centers and in the internal medicine markets during the quarter
will be solid contributors to our recurring revenue model.
Additionally, we are dedicated to a strong and consistent
research and development process to introduce new products that
effectively diagnose conditions in both the veterinary and medical
markets and that provide an additional cash flow stream to the
medical professionals that rely on Abaxis technology. We also
look forward to entering into the rapid testing market by taking
full advantage of the lateral flow technology that we licensed.
We believe there are exciting growth opportunities ahead in
the coming years."
Conference Call
Abaxis has scheduled a conference call to discuss its results at
4:15 p.m. Eastern Time on
Tuesday, October 26, 2010.
Participants can dial (877) 317-6789 or (412) 317-6789 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 (877) 344-7529 or (412) 317-0088, access code
445369, through October 29, 2010.
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, markets and sells 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 Financial Measures
To supplement the financial statements presented in accordance
with United States generally
accepted accounting principles (GAAP), Abaxis uses operating income
per share, a non-GAAP financial measure. The presentation of
this financial information is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
For more information on this non-GAAP financial measure,
refer to the table captioned "Operating Income Per Share" included
at the end of this release. Abaxis defines operating income
per share as operating income divided by the weighted average
outstanding shares. 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"), including but not limited to statements
related to Abaxis' cash position, financial resources and potential
for future growth, market acceptance of new or planned product
offerings, process improvements and product manufacturing quality
and efficiencies in future production of our products. 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 Abaxis' 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 related to the
protection of the company's intellectual property or claims of
infringement of intellectual property asserted by third parties,
risks related to condition of the United
States economy, risks involved in carrying of inventory and
other risks detailed under "Risk Factors" in Abaxis'
Quarterly Report on Form 10-Q for the fiscal quarter ended
June 30, 2010 and Abaxis'
other periodic reports filed from time to time 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.
Financial Tables on Following Pages
ABAXIS, INC.
|
|
Condensed Consolidated
Statements of Income
|
|
(in thousands, except per share
data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
Revenues
|
$
35,277
|
$
30,262
|
$
70,230
|
$
59,887
|
|
Cost of revenues
|
15,527
|
12,411
|
30,696
|
24,881
|
|
Gross profit
|
19,750
|
17,851
|
39,534
|
35,006
|
|
Operating expenses:
|
|
|
|
|
|
Research and
development
|
3,296
|
2,594
|
6,374
|
5,167
|
|
Sales and
marketing
|
8,408
|
7,582
|
17,041
|
13,942
|
|
General and
administrative
|
2,652
|
2,689
|
4,776
|
5,187
|
|
Total operating
expenses
|
14,356
|
12,865
|
28,191
|
24,296
|
|
Income from
operations
|
5,394
|
4,986
|
11,343
|
10,710
|
|
Interest and other income
(expense), net
|
757
|
292
|
652
|
806
|
|
Income before income tax
provision
|
6,151
|
5,278
|
11,995
|
11,516
|
|
Income tax provision
|
2,402
|
2,081
|
4,666
|
4,563
|
|
Net income
|
$
3,749
|
$
3,197
|
$
7,329
|
$
6,953
|
|
Net income per share:
|
|
|
|
|
|
Basic net income per
share
|
$
0.17
|
$
0.15
|
$
0.33
|
$
0.32
|
|
Diluted net income per
share
|
$
0.17
|
$
0.14
|
$
0.32
|
$
0.31
|
|
|
|
|
|
|
|
Shares used in the calculation
of net income per share:
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,317
|
22,005
|
22,264
|
21,985
|
|
Weighted average common
shares outstanding - diluted
|
22,691
|
22,574
|
22,736
|
22,492
|
|
|
|
|
|
|
|
|
|
|
|
|
ABAXIS, INC.
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited and in
thousands)
|
|
|
|
|
|
|
September
30,
|
March
31,
|
|
|
2010
|
2010
|
|
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
$
40,650
|
$
27,857
|
|
Short-term
investments
|
31,293
|
32,343
|
|
Receivables, net
|
24,878
|
23,714
|
|
Inventories
|
17,950
|
19,067
|
|
Prepaid expenses and other
current assets
|
2,307
|
1,588
|
|
Net deferred tax assets,
current
|
3,297
|
3,773
|
|
Total current assets
|
120,375
|
108,342
|
|
Long-term investments
|
28,683
|
36,319
|
|
Property and equipment,
net
|
15,772
|
15,544
|
|
Intangible assets,
net
|
4,313
|
4,600
|
|
Net deferred tax assets,
non-current
|
2,935
|
2,935
|
|
Other assets
|
103
|
76
|
|
Total assets
|
$
172,181
|
$
167,816
|
|
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$
5,483
|
$
9,404
|
|
Accrued payroll and related
expenses
|
5,754
|
5,615
|
|
Accrued taxes
|
267
|
400
|
|
Other accrued
liabilities
|
1,217
|
1,256
|
|
Deferred revenue
|
975
|
1,157
|
|
Warranty reserve
|
798
|
1,183
|
|
Total current
liabilities
|
14,494
|
19,015
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Deferred rent
|
328
|
163
|
|
Deferred revenue
|
1,674
|
1,359
|
|
Warranty reserve
|
53
|
160
|
|
Total non-current
liabilities
|
2,055
|
1,682
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
Common stock
|
126,234
|
125,050
|
|
Retained
earnings
|
29,398
|
22,069
|
|
Total shareholders'
equity
|
155,632
|
147,119
|
|
Total liabilities and
shareholders' equity
|
$
172,181
|
$
167,816
|
|
|
|
|
|
|
|
|
Operating Income Per
Share
|
|
(In thousands, except per share
data)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
Shares used in the calculation
of operating income per share:
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,317
|
22,005
|
22,264
|
21,985
|
|
Weighted average common
shares outstanding - diluted
|
22,691
|
22,574
|
22,736
|
22,492
|
|
|
|
|
|
|
|
Operating income per share -
basic
|
$
0.24
|
$
0.23
|
$
0.51
|
$
0.49
|
|
Operating income per share -
diluted
|
$
0.24
|
$
0.22
|
$
0.50
|
$
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by Geographic
Region
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
North America
|
$
29,528
|
$
24,774
|
$
57,317
|
$
48,885
|
|
International
|
5,749
|
5,488
|
12,913
|
11,002
|
|
Total revenues
|
$
35,277
|
$
30,262
|
$
70,230
|
$
59,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by Customer
Group
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
Medical Market
|
$
6,857
|
$
6,345
|
$
13,295
|
$
12,108
|
|
Veterinary Market
|
26,649
|
21,684
|
53,467
|
43,507
|
|
Other
|
1,771
|
2,233
|
3,468
|
4,272
|
|
Total revenues
|
$
35,277
|
$
30,262
|
$
70,230
|
$
59,887
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Abaxis, Inc.
Copyright . 26 PR Newswire