UNION CITY, Calif.,
Oct. 25, 2011 /PRNewswire/ -- ABAXIS,
Inc. (NasdaqGS: ABAX), a medical products company manufacturing
point-of-care blood analysis systems, today reported financial
results for the second fiscal quarter ended September 30, 2011.
Record quarterly highlights include:
- Revenues of $40.0 million, up 13%
over last year's comparable quarter.
- North America revenues of
$32.0 million, up 8% over last year's
comparable quarter.
- Veterinary market sales of $31.5
million, up 18% over last year's comparable quarter.
- Total medical and veterinary reagent disc sales of $22.8 million, up 18% over last year's comparable
quarter.
Other quarterly highlights include:
- Medical market sales of $7.3
million, up 7% over last year's comparable quarter.
- Total medical and veterinary instrument sales of $8.8 million, up 15% over last year's comparable
quarter.
- Total medical and veterinary instrument sales of 1,227 units,
up 24% over last year's comparable quarter.
- Total medical and veterinary reagent disc sales of 1.8 million
units, up 16% over last year's comparable quarter.
Quarterly Results: For the fiscal quarter ended
September 30, 2011, Abaxis reported
revenues of $40.0 million, as
compared with revenues of $35.3
million for the comparable period last year, an increase of
13 percent. Revenues from instruments, which include
chemistry analyzers, hematology instruments, VSpro
coagulation and specialty analyzers and i-STAT analyzers, increased
by an aggregate of $1.1 million, or
15 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
$4.2 million, or 17 percent, over the
same period last year. Abaxis reported net income of
$3.3 million for the fiscal quarter
ended September 30, 2011, compared to
$3.7 million for the same period last
year. Abaxis' effective tax rate in the quarter ended
September 30, 2011 was 37 percent,
compared to 39 percent for the same period last
year. Abaxis reported diluted net income per share of
$0.15 (calculated based on 22,564,000
shares) for the three-month period ended September 30, 2011, compared to $0.17 per share (calculated based on 22,691,000
shares) for the same period last year.
Six-Month Results: For the six-month period ended
September 30, 2011, Abaxis reported
revenues of $76.0 million, as
compared with revenues of $70.2
million for the comparable period last year, an increase of
8 percent. Revenues from instrument sales increased by
an aggregate of $1.3 million, or 9
percent, over the same period last year. Revenues from
consumables increased by an aggregate of $5.6 million, or 11 percent, over the same period
last year. The company reported net income of
$5.5 million, compared to
$7.3 million for the same period last
year. The company's effective tax rate in the six-month
period ended September 30, 2011, was
37 percent, compared to 39 percent for the same period last year.
The company reported diluted net income per share of
$0.24 (calculated based on 22,850,000
shares) for the six-month period ended September 30, 2011, compared to $0.32 per share (calculated based on 22,736,000
shares) for the same period last year.
Other Reported Information: Total sales in the
medical market for the second quarter of fiscal 2012 were
$7.3 million, an increase of 7
percent, compared to the same period last year. Medical sales
worldwide, excluding sales to the U.S. government, during the
second quarter of fiscal 2012 were $6.3
million, an increase of 6 percent, compared to the same
period last year. Total sales in the veterinary market for
the second quarter of fiscal 2012 were $31.5
million, an increase of 18 percent, compared to the same
period last year. Veterinary reagent disc sales for the
second quarter of fiscal 2012 were $17.6
million, an increase of 18 percent compared to the same
period last year. Non-cash compensation expense recognized
for share-based awards during the second quarter of fiscal 2012 was
$1.6 million, compared to
$1.1 million for the same period last
year. Cash, cash equivalents and investments decreased during
the second quarter of fiscal 2012 by $24.2
million due to our stock repurchase program. Costs
related to development of our full service commercial laboratory
for veterinarians, Abaxis Veterinary Reference Laboratories (AVRL),
during the three and six months ended September 30, 2011, were $1.1 million and $1.6
million, respectively.
"This was a very solid quarter for Abaxis," commented
Clint Severson, chairman and chief
executive officer of Abaxis. "We achieved record revenues for
the quarter exceeding $40.0 million,
total instrument sales in units grew 24%, total reagent disc sales
increased 18%, and we experienced solid international sales growth,
approaching 40%. We were particularly pleased with the growth
in sales in Europe and
Asia; which we believe bodes well
for the future. Our markets, by and large, appear to be very
strong at the moment. While we still have work to do in
accelerating medical instrument sales, we are confident in the
accuracy and reliability of our Piccolo medical instrument and of
our ability to gain market share going forward. We are very
pleased with the results of the second quarter."
Mr. Severson continued, "On another front, in our second quarter
of fiscal 2012, AVRL went live with our partners at Kansas State University. We have completed
the bulk of the initial investment to get this venture operational
and we look forward to serving the veterinary community nationwide
with our leading-edge technology and customer service. Over
the past 16 years we have built a high level of credibility with
the segment of the veterinary community that relies on our
point-of-care instruments to compassionately care for their
patients on a timely basis. We believe that this community
will give AVRL the opportunity to earn their reference laboratory
business. Our expectation is to leverage that credibility and
develop a consistently growing business in the years to come."
"We are also devoted to enhancing the market capitalization of
the company for the benefit of our loyal shareholders. The
Board has authorized us to acquire up to $40.0 million of Abaxis common stock in the open
market. In our second quarter of fiscal 2012, we acquired
approximately 1.2 million shares in the open market for
approximately $27.3 million. We
believe this is a sound investment and we will take the opportunity
to support our shareholders in the future when we believe the price
is appropriate. We are very upbeat about the prospects of the
company 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 25, 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,
confirmation code 10005496, through November
1, 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, through its AVRL
Division, provides routine laboratory testing as well as specialty
testing for veterinarians nationwide. 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, the continuing development
of its products and the Abaxis Veterinary Reference
Laboratories, 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 June 30, 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
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Revenues
|
$
40,025
|
$
35,277
|
$
76,028
|
$
70,230
|
|
Cost of revenues
|
18,004
|
15,527
|
34,784
|
30,696
|
|
Gross profit
|
22,021
|
19,750
|
41,244
|
39,534
|
|
Operating expenses:
|
|
|
|
|
|
Research and
development
|
3,008
|
3,296
|
6,462
|
6,374
|
|
Sales and
marketing
|
9,335
|
8,408
|
18,487
|
17,041
|
|
General and
administrative
|
4,495
|
2,652
|
7,914
|
4,776
|
|
Total operating
expenses
|
16,838
|
14,356
|
32,863
|
28,191
|
|
Income from
operations
|
5,183
|
5,394
|
8,381
|
11,343
|
|
Interest and other income
(expense), net
|
56
|
757
|
350
|
652
|
|
Income before income tax
provision
|
5,239
|
6,151
|
8,731
|
11,995
|
|
Income tax provision
|
1,918
|
2,402
|
3,196
|
4,666
|
|
Net income
|
$
3,321
|
$
3,749
|
$
5,535
|
$
7,329
|
|
Net income per share:
|
|
|
|
|
|
Basic net income per
share
|
$
0.15
|
$
0.17
|
$
0.25
|
$
0.33
|
|
Diluted net income per
share
|
$
0.15
|
$
0.17
|
$
0.24
|
$
0.32
|
|
|
|
|
|
|
|
Shares used in the calculation
of net income per share:
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,290
|
22,317
|
22,484
|
22,264
|
|
Weighted average common
shares outstanding - diluted
|
22,564
|
22,691
|
22,850
|
22,736
|
|
|
|
|
|
|
ABAXIS, INC.
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited and in
thousands)
|
|
|
|
|
|
|
September
30,
|
March
31,
|
|
|
2011
|
2011
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
$
37,994
|
$
43,471
|
|
Short-term
investments
|
17,649
|
25,981
|
|
Receivables, net
|
27,490
|
27,880
|
|
Inventories
|
19,109
|
19,814
|
|
Prepaid expenses and other
current assets
|
5,068
|
3,496
|
|
Net deferred tax assets,
current
|
3,048
|
3,422
|
|
Total current
assets
|
110,358
|
124,064
|
|
Long-term investments
|
29,099
|
36,237
|
|
Investment in unconsolidated
affiliate
|
2,697
|
2,769
|
|
Property and equipment,
net
|
22,913
|
19,637
|
|
Intangible assets,
net
|
3,919
|
4,216
|
|
Net deferred tax assets,
non-current
|
1,203
|
1,203
|
|
Other assets
|
111
|
134
|
|
Total
assets
|
$
170,300
|
$
188,260
|
|
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$
6,996
|
$
6,173
|
|
Accrued payroll and related
expenses
|
6,873
|
6,129
|
|
Accrued taxes
|
232
|
559
|
|
Other accrued
liabilities
|
1,788
|
1,677
|
|
Deferred revenue
|
1,103
|
953
|
|
Warranty reserve
|
1,123
|
1,031
|
|
Total current
liabilities
|
18,115
|
16,522
|
|
Non-current
liabilities:
|
|
|
|
Deferred rent
|
530
|
416
|
|
Deferred revenue
|
2,105
|
1,737
|
|
Warranty reserve
|
313
|
191
|
|
Notes payable, less current
portion
|
834
|
746
|
|
Total non-current
liabilities
|
3,782
|
3,090
|
|
Total
liabilities
|
21,897
|
19,612
|
|
Shareholders' equity:
|
|
|
|
Common stock
|
106,262
|
132,042
|
|
Retained earnings
|
42,141
|
36,606
|
|
Total shareholders'
equity
|
148,403
|
168,648
|
|
Total liabilities and
shareholders' equity
|
$
170,300
|
$
188,260
|
|
|
|
|
Operating Income Per
Share
|
|
(In thousands, except per share
data)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Shares used in the calculation
of operating income per share:
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
22,290
|
22,317
|
22,484
|
22,264
|
|
Weighted average common
shares outstanding - diluted
|
22,564
|
22,691
|
22,850
|
22,736
|
|
|
|
|
|
|
|
Operating income per share -
basic
|
$
0.23
|
$
0.24
|
$
0.37
|
$
0.51
|
|
Operating income per share -
diluted
|
$
0.23
|
$
0.24
|
$
0.37
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by Geographic
Region
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
North America
|
$
31,985
|
$
29,528
|
$
61,693
|
$
57,317
|
|
International
|
8,040
|
5,749
|
14,335
|
12,913
|
|
Total revenues
|
$
40,025
|
$
35,277
|
$
76,028
|
$
70,230
|
|
|
|
|
|
|
|
Revenues by Customer
Group
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
September
30,
|
September
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Medical Market
|
$
7,333
|
$
6,857
|
$
14,489
|
$
13,295
|
|
Veterinary Market
|
31,548
|
26,649
|
59,217
|
53,467
|
|
Other
|
1,144
|
1,771
|
2,322
|
3,468
|
|
Total revenues
|
$
40,025
|
$
35,277
|
$
76,028
|
$
70,230
|
|
|
|
|
|
|
SOURCE ABAXIS, Inc.