UNION CITY, Calif.,
April 28, 2011 Abaxis, Inc.
(NasdaqGS: ABAX), a medical products company manufacturing
point-of-care blood analysis systems, today reported financial
results for the fiscal quarter and fiscal year ended March 31, 2011.
Record quarterly and fiscal 2011 highlights include:
- Revenues of $37.5 million, up 12%
over last year's comparable quarter, and $143.7 million for fiscal 2011, up 15%
year-over-year.
- North America revenues of
$30.6 million, up 11% over last
year's comparable quarter, and $118.0
million for fiscal 2011, up 16% year-over-year.
- Veterinary market sales of $28.7
million, up 15% over last year's comparable quarter, and
$108.4 million for fiscal 2011, up
17% year-over-year.
- Total medical and veterinary reagent disc sales of $22.5 million, up 18% over last year's comparable
quarter, and $81.4 million for fiscal
2011, up 13% year-over-year.
- Total medical and veterinary reagent disc sales of 1.8 million
units, up 15% over last year's comparable quarter, and 6.4 million
units for fiscal 2011, up 12% year-over-year.
Other quarterly highlights include:
- Medical market sales of $7.6
million, up 10% over last year's comparable quarter, and
$29.0 million for fiscal 2011, up 20%
year-over-year.
- Total medical and veterinary instrument sales of $7.8 million, up 5% over last year's comparable
quarter, and $32.1 million for fiscal
2011, up 11% year-over-year.
- Total medical and veterinary instrument sales of 1,074 units,
up 1% over last year's comparable quarter, and 4,348 units for
fiscal 2011, up 8% year-over-year.
- Cash, cash equivalents and investments as of March 31, 2011 of $105.7
million, compared to $96.5
million as of March 31,
2010.
Quarterly Results: For the fiscal quarter ended
March 31, 2011, Abaxis reported
revenues of $37.5 million, as
compared with revenues of $33.7
million for the comparable period last year, an increase of
12 percent. Revenues from instrument sales, which
include chemistry analyzers, hematology instruments, VSpro
coagulation and specialty analyzers and i-STAT analyzers, increased
by an aggregate of $340,000, or 5
percent, over the same period last year. Total medical and
veterinary instrument sales were 1,074 units, up 1 percent over the
same period last year. Revenues from consumables, which
include reagent discs, hematology reagent kits, VSpro
coagulation and specialty cartridges, i-STAT cartridges and
heartworm rapid tests, increased by an aggregate of $4.0 million, or 17 percent, over the same period
last year. Abaxis reported net income of $3.4 million for the fiscal quarter ended
March 31, 2011, compared to
$2.6 million for the same period last
year. Abaxis' effective tax rate in the fourth quarter of
both fiscal 2010 and 2011 was 41 percent. Abaxis reported
diluted net income per share of $0.15
(calculated based on 23,013,000 shares) for the three-month period
ended March 31, 2011, compared to
$0.12 per share (calculated based on
22,725,000 shares) for the same period last year.
Fiscal 2011 Results: For the fiscal year ended
March 31, 2011, Abaxis reported
revenues of $143.7 million, as
compared with revenues of $124.6
million for the prior year, an increase of 15 percent.
Revenues from instrument sales increased by an aggregate of
$3.3 million, or 11 percent, over the
prior year. Total medical and veterinary instrument sales
were 4,348 units, up 8 percent over the prior year. Revenues
from consumables increased by an aggregate of $17.1 million, or 20 percent, over the prior
year. Abaxis reported net income of $14.5 million, compared to $13.0 million for the prior year. Abaxis'
effective tax rate in the fiscal year ended March 31, 2011, was 38 percent, compared to 39
percent for the prior year. Abaxis reported diluted net
income per share of $0.64 (calculated
based on 22,858,000 shares) for fiscal 2011, compared to
$0.58 per share (calculated based on
22,606,000 shares) for fiscal 2010.
Other Reported Information: Total sales in the
medical market for the fourth quarter of fiscal 2011 were
$7.6 million, an increase of 10
percent compared to the same period last year. Medical sales
worldwide, excluding sales to the U.S. government, during the
fourth quarter of fiscal 2011 were $7.0
million, an increase of 11 percent compared to the same
period last year. Total sales in the veterinary market for
the fourth quarter of fiscal 2011 were $28.7
million, an increase of 15 percent compared to the same
period last year. Veterinary reagent disc sales for the
fourth quarter of fiscal 2011 were $17.1
million, an increase of 22 percent compared to the same
period last year. Non-cash compensation expense recognized
for share-based awards during the fourth quarter of fiscal 2011 was
$1.3 million, compared to
$1.6 million for the same period last
year.
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "The results of the
fourth quarter were robust, closing out fiscal 2011 as the
strongest year in the history of the company. For the fourth
quarter of fiscal 2011, we achieved total revenue growth of 12% and
net income growth of 28% compared to the same period last year.
Driving those results were solid double-digit growth, and
record sales, in North America and
the veterinary market and in total reagent disc sales. We had
strong and consistent revenue growth in each of the four quarters
of the fiscal year 2011. For the fiscal year 2011, medical
market sales increased 20% and veterinary market sales were up 17%
year-over-year. Coupled with strong operational and financial
performance throughout the year across all our major product lines,
we closed fiscal year 2011 on a very positive note setting the
stage for the coming year."
Mr. Severson continued, "Looking ahead, we are making a
strategic investment in developing our centralized veterinary
laboratory operation in conjunction with Kansas State University. We believe that this
will enable us to successfully leverage the Abaxis brand and the
reputation of Kansas State University
with veterinarians across the country as the centralized laboratory
of choice to achieve consistent and definitive testing services
that will help them to improve outcomes within their patient
populations. We also believe this is a model that will set
the stage for further expansion in the years to come."
Conference Call
Abaxis has scheduled a conference call to discuss its results at
4:15 p.m. Eastern Time on
Thursday, April 28, 2011.
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
450287, through May 3, 2011.
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 and penetration of new or
planned product offerings, and future recurring revenues and
results of operations. 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 losses or system failures with respect to
Abaxis' facilities or manufacturing operations, fluctuations in
quarterly operating results, dependence on sole suppliers, the
market acceptance of Abaxis' 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 competing in the human diagnostic market, risks related to the
protection of Abaxis' intellectual property or claims of
infringement of intellectual property asserted by third parties,
risks related to condition of the United
States economy and other risks detailed under "Risk Factors"
in Abaxis' Quarterly Report on Form 10-Q for the fiscal
quarter ended December 31, 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.
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|
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Condensed Consolidated
Statements of Income
|
|
|
|
|
|
|
(in thousands, except per share
data)
|
|
|
|
|
|
|
(Unaudited)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Twelve
Months Ended
|
|
|
|
March
31,
|
March
31,
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Revenues
|
$
37,540
|
$
33,665
|
$
143,676
|
$
124,557
|
|
|
Cost of revenues
|
17,091
|
14,845
|
63,884
|
52,435
|
|
|
Gross profit
|
20,449
|
18,820
|
79,792
|
72,122
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Research and
development
|
2,652
|
2,686
|
11,973
|
10,688
|
|
|
Sales and
marketing
|
9,135
|
8,710
|
34,384
|
30,138
|
|
|
General and
administrative
|
3,367
|
2,782
|
10,963
|
10,521
|
|
|
Total operating
expenses
|
15,154
|
14,178
|
57,320
|
51,347
|
|
|
Income from
operations
|
5,295
|
4,642
|
22,472
|
20,775
|
|
|
Interest and other income
(expense), net
|
401
|
(165)
|
1,099
|
630
|
|
|
Income before income tax
provision
|
5,696
|
4,477
|
23,571
|
21,405
|
|
|
Income tax provision
|
2,323
|
1,837
|
9,034
|
8,382
|
|
|
Net income
|
$
3,373
|
$
2,640
|
$
14,537
|
$
13,023
|
|
|
Net income per share:
|
|
|
|
|
|
|
Basic net income per
share
|
$
0.15
|
$
0.12
|
$
0.65
|
$
0.59
|
|
|
Diluted net income per
share
|
$
0.15
|
$
0.12
|
$
0.64
|
$
0.58
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation
of net income per share:
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,537
|
22,081
|
22,365
|
22,021
|
|
|
Weighted average common
shares outstanding - diluted
|
23,013
|
22,725
|
22,858
|
22,606
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|
|
|
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|
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|
ABAXIS, INC.
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|
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|
Condensed Consolidated Balance
Sheets
|
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|
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|
(Unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
March
31,
|
|
|
|
2011
|
2010
|
|
|
|
|
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|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
43,471
|
$
27,857
|
|
|
Short-term
investments
|
25,981
|
32,343
|
|
|
Receivables, net
|
27,880
|
23,714
|
|
|
Inventories
|
19,814
|
19,067
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|
|
Prepaid expenses and other
current assets
|
3,496
|
1,588
|
|
|
Net deferred tax assets,
current
|
3,422
|
3,773
|
|
|
Total current assets
|
124,064
|
108,342
|
|
|
Long-term investments
|
36,237
|
36,319
|
|
|
Investment in unconsolidated
affiliate
|
2,769
|
-
|
|
|
Property and equipment,
net
|
19,637
|
15,544
|
|
|
Intangible assets,
net
|
4,216
|
4,600
|
|
|
Net deferred tax assets,
non-current
|
1,203
|
2,935
|
|
|
Other assets
|
134
|
76
|
|
|
Total assets
|
$
188,260
|
$
167,816
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
6,173
|
$
9,404
|
|
|
Accrued payroll and related
expenses
|
6,129
|
5,615
|
|
|
Accrued taxes
|
559
|
400
|
|
|
Other accrued
liabilities
|
1,677
|
1,256
|
|
|
Deferred revenue
|
953
|
1,157
|
|
|
Warranty reserve
|
1,031
|
1,183
|
|
|
Total current
liabilities
|
16,522
|
19,015
|
|
|
|
|
|
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|
Non-current
liabilities:
|
|
|
|
|
Deferred rent
|
416
|
163
|
|
|
Deferred revenue
|
1,737
|
1,359
|
|
|
Warranty reserve
|
191
|
160
|
|
|
Notes payable, less current
portion
|
746
|
-
|
|
|
Total non-current
liabilities
|
3,090
|
1,682
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Common stock
|
132,042
|
125,050
|
|
|
Retained
earnings
|
36,606
|
22,069
|
|
|
Total shareholders'
equity
|
168,648
|
147,119
|
|
|
Total liabilities and
shareholders' equity
|
$
188,260
|
$
167,816
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Per
Share
|
|
|
|
|
|
|
(In thousands, except per share
data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
Twelve
Months Ended
|
|
|
|
March
31,
|
March
31,
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Shares used in the calculation
of operating income per share:
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,537
|
22,081
|
22,365
|
22,021
|
|
|
Weighted average common
shares outstanding - diluted
|
23,013
|
22,725
|
22,858
|
22,606
|
|
|
|
|
|
|
|
|
|
Operating income per share -
basic
|
$
0.23
|
$
0.21
|
$
1.00
|
$
0.94
|
|
|
Operating income per share -
diluted
|
$
0.23
|
$
0.20
|
$
0.98
|
$
0.92
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
Revenues by Geographic
Region
|
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|
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|
|
(In thousands)
|
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|
|
|
|
|
|
Three Months
Ended
|
Twelve
Months Ended
|
|
|
|
March
31,
|
March
31,
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
North America
|
$
30,607
|
$
27,599
|
$
117,992
|
$
101,391
|
|
|
International
|
6,933
|
6,066
|
25,684
|
23,166
|
|
|
Total revenues
|
$
37,540
|
$
33,665
|
$
143,676
|
$
124,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by Customer
Group
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
Twelve
Months Ended
|
|
|
|
March
31,
|
March
31,
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Medical Market
|
$
7,567
|
$
6,896
|
$
28,988
|
$
24,176
|
|
|
Veterinary Market
|
28,650
|
25,015
|
108,400
|
92,411
|
|
|
Other
|
1,323
|
1,754
|
6,288
|
7,970
|
|
|
Total revenues
|
$
37,540
|
$
33,665
|
$
143,676
|
$
124,557
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Abaxis, Inc.