UNION CITY, Calif.,
July 28, 2011 /PRNewswire/ -- ABAXIS,
Inc. (NasdaqGS: ABAX), a medical products company manufacturing
point-of-care blood analysis systems, today reported financial
results for the first fiscal quarter ended June 30, 2011.
Quarterly highlights include:
- Revenues of $36.0 million, up 3%
over last year's comparable quarter.
- North America revenues of
$29.7 million, up 7% over last year's
comparable quarter.
- Medical market sales of $7.2
million, up 11% over last year's comparable quarter.
- Veterinary market sales of $27.7
million, up 3% over last year's comparable quarter.
- Total medical and veterinary instruments sales of $7.5 million, up 3% over last year's comparable
quarter.
- Total medical and veterinary reagent disc sales of $20.7 million, up 3% over last year's comparable
quarter.
- Total medical reagent disc sales of $5.0
million, up 12% over last year's comparable quarter.
- Cash, cash equivalents and investments of $108.9 million as of June
30, 2011, compared to $98.4
million as of June 30,
2010.
Quarterly Results: For the fiscal quarter ended
June 30, 2011, Abaxis reported
revenues of $36.0 million, as
compared with revenues of $35.0
million for the comparable period last year, an increase of
3 percent. Revenues from instruments, which include chemistry
analyzers, hematology instruments, VSpro coagulation and
specialty analyzers and i-STAT analyzers, increased by an aggregate
of $204,000, or 3 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 rapid
tests, increased by an aggregate of $1.4
million, or 5 percent, over the same period last year.
Abaxis reported net income of $2.2
million for the fiscal quarter ended June 30, 2011, compared to $3.6 million for the same period last year.
Abaxis' effective tax rate in the quarter ended June 30, 2011 was 37 percent, compared to 39
percent for the same period last year. Abaxis reported
diluted net income per share of $0.10
(calculated based on 23,095,000 shares) for the three-month period
ended June 30, 2011, compared to
$0.16 per share (calculated based on
22,750,000 shares) for the same period last year.
Other Reported Information: Total sales in the
medical market for the first quarter of fiscal 2012 were
$7.2 million, an increase of 11
percent, compared to the same period last year. Medical sales
worldwide, excluding sales to the U.S. government, during the first
quarter of fiscal 2012 were $6.2
million, an increase of 6 percent compared to the same
period last year. Total sales in the veterinary market for
the first quarter of fiscal 2012 were $27.7
million, an increase of 3 percent, compared to the same
period last year. Veterinary reagent disc sales for the first
quarter of fiscal 2012 were $15.7
million, which was flat compared to the same period last
year. Non-cash compensation expense recognized for
share-based awards in both three-month periods were $1.1 million.
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "The first quarter of
the fiscal year is best characterized as a period of investment for
future growth. Our operating expenses increased by
approximately $2.2 million in the
first quarter of fiscal 2012, due to our strategic investments in
our upcoming Abaxis Veterinary Reference Laboratories (AVRL),
scheduled to be fully operational this year, research and
development for future new products for both the medical and
veterinary markets, sales and marketing to continue building brand
awareness, and protecting our intellectual property. We
believe these investments will provide substantial growth potential
in the years to come. While top-line revenues for the quarter
were up three percent versus the comparable quarter last year, our
North American business grew at a seven percent clip. For the
quarter, our international business was down 12 percent, primarily
attributable to timing issues in the booking of certain orders
through distributors. We expect the bulk of those orders to
be recognized in the near future. We sold a total of 1.6
million reagent disc units across all product lines during the
quarter; which is the third highest quarter in reagent disc unit
sales in the history of the company."
Mr. Severson continued, "As we have previously disclosed, legal
expenses associated with the on-going intellectual property
infringement case impacted the results of the quarter. As a
company founded on innovation, and one that continues to be a
leader in new technologies, we believe that infringement of our
intellectual property is something we must take very seriously.
We are pleased that the financial underpinnings of the
company remain very strong as evidenced by solid profitability for
the quarter and an increase in our cash, cash equivalents and
investments of $10.5 million to
$108.9 million compared to the same
period last year. As we move forward, we expect that fiscal
year 2012 will continue the trajectory of growth set in recent
years."
Conference Call
Abaxis has scheduled a conference call to discuss its results at
4:15 p.m. Eastern Time on
Thursday, July 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 will be available by visiting http://www.abaxis.com for the
next 30 days or by calling (877) 344-7529 or (412) 317-0088, access
code 10002131, through August 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. The veterinary
business also provides to the animal health and research market a
line of hematology instruments for point-of-care complete blood
counts (CBC), a specialty instrument to screen for and detect
clotting disorders and to measure equine fibrinogen levels, a
handheld instrument for the rapid assessment of certain critical
care tests and rapid point-of-care tests for Heartworm infections
in dogs, Parvovirus and Giardia. Abaxis is in the final
stages of building a full-service laboratory testing facility for
veterinarians, focusing on specialty and esoteric testing and
analysis. This state-of-the-art commercial laboratory will be
the hub of the Abaxis Veterinary Reference Laboratories (AVRL).
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' Annual Report on Form 10-K for the fiscal year ended
March 31, 2011 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
|
|
|
June
30,
|
|
|
2011
|
2010
|
|
|
|
|
|
Revenues
|
$
36,003
|
$
34,953
|
|
Cost of revenues
|
16,780
|
15,169
|
|
Gross profit
|
19,223
|
19,784
|
|
Operating expenses:
|
|
|
|
Research and
development
|
3,454
|
3,078
|
|
Sales and
marketing
|
9,152
|
8,633
|
|
General and
administrative
|
3,419
|
2,124
|
|
Total operating
expenses
|
16,025
|
13,835
|
|
Income from
operations
|
3,198
|
5,949
|
|
Interest and other income
(expense), net
|
294
|
(105)
|
|
Income before income tax
provision
|
3,492
|
5,844
|
|
Income tax provision
|
1,278
|
2,264
|
|
Net income
|
$
2,214
|
$
3,580
|
|
Net income per share:
|
|
|
|
Basic net income per
share
|
$
0.10
|
$
0.16
|
|
Diluted net income per
share
|
$
0.10
|
$
0.16
|
|
|
|
|
|
Shares used in the calculation
of net income per share:
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,681
|
22,211
|
|
Weighted average common
shares outstanding - diluted
|
23,095
|
22,750
|
|
|
|
|
ABAXIS, INC.
|
|
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited and in
thousands)
|
|
|
|
|
|
|
June
30,
|
March
31,
|
|
|
2011
|
2011
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
$
45,073
|
$
43,471
|
|
Short-term
investments
|
16,691
|
25,981
|
|
Receivables, net
|
26,422
|
27,880
|
|
Inventories
|
18,608
|
19,814
|
|
Prepaid expenses and other
current assets
|
3,854
|
3,496
|
|
Net deferred tax assets,
current
|
3,430
|
3,422
|
|
Total current
assets
|
114,078
|
124,064
|
|
Long-term investments
|
47,129
|
36,237
|
|
Investment in unconsolidated
affiliate
|
2,731
|
2,769
|
|
Property and equipment,
net
|
21,532
|
19,637
|
|
Intangible assets,
net
|
4,067
|
4,216
|
|
Net deferred tax assets,
non-current
|
1,203
|
1,203
|
|
Other assets
|
132
|
134
|
|
Total assets
|
$
190,872
|
$
188,260
|
|
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$
5,777
|
$
6,173
|
|
Accrued payroll and related
expenses
|
6,215
|
6,129
|
|
Accrued taxes
|
533
|
559
|
|
Other accrued
liabilities
|
1,805
|
1,677
|
|
Deferred revenue
|
1,044
|
953
|
|
Warranty reserve
|
1,195
|
1,031
|
|
Total current
liabilities
|
16,569
|
16,522
|
|
Non-current
liabilities:
|
|
|
|
Deferred rent
|
478
|
416
|
|
Deferred revenue
|
1,958
|
1,737
|
|
Warranty reserve
|
275
|
191
|
|
Notes payable, less current
portion
|
725
|
746
|
|
Total non-current
liabilities
|
3,436
|
3,090
|
|
Total
liabilities
|
20,005
|
19,612
|
|
Shareholders' equity:
|
|
|
|
Common stock
|
132,047
|
132,042
|
|
Retained earnings
|
38,820
|
36,606
|
|
Total shareholders'
equity
|
170,867
|
168,648
|
|
Total liabilities and
shareholders' equity
|
$
190,872
|
$
188,260
|
|
|
|
|
Operating Income Per
Share
|
|
|
|
(In thousands, except per share
data)
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2011
|
2010
|
|
Shares used in the calculation
of operating income per share:
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,681
|
22,211
|
|
Weighted average common
shares outstanding - diluted
|
23,095
|
22,750
|
|
|
|
|
|
Operating income per share -
basic
|
$
0.14
|
$
0.27
|
|
Operating income per share -
diluted
|
$
0.14
|
$
0.26
|
|
|
|
|
|
|
|
|
|
Revenues by Geographic
Region
|
|
|
|
(In thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2011
|
2010
|
|
North America
|
$
29,708
|
$
27,789
|
|
International
|
6,295
|
7,164
|
|
Total revenues
|
$
36,003
|
$
34,953
|
|
|
|
|
|
|
|
|
|
Revenues by Customer
Group
|
|
|
|
(In thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2011
|
2010
|
|
Medical Market
|
$
7,156
|
$
6,438
|
|
Veterinary Market
|
27,669
|
26,818
|
|
Other
|
1,178
|
1,697
|
|
Total revenues
|
$
36,003
|
$
34,953
|
|
|
|
|
|
|
|
|
SOURCE Abaxis, Inc.