UNION CITY, Calif.,
Jan. 26, 2012 /PRNewswire/ -- Abaxis,
Inc. (NasdaqGS: ABAX), a medical products company manufacturing
point-of-care blood analysis systems, today reported financial
results for the third fiscal quarter ended December 31, 2011.
Record quarterly highlights include:
- Medical market sales of $8.1
million, up $21,000 over last
year's comparable quarter.
- Total medical reagent disc sales of $5.6
million, up 8% over last year's comparable quarter.
- Total medical reagent disc sales of 655,000 units, up 14% over
last year's comparable quarter.
Other quarterly highlights include:
- North America revenues of
$31.8 million, up 6% over last year's
comparable quarter.
- Veterinary market sales of $28.5
million, up 8% over last year's comparable quarter.
- Total medical and veterinary reagent disc sales of $20.4 million, up 5% over last year's comparable
quarter.
- Total medical and veterinary reagent disc sales of 1.6 million
units, up 5% over last year's comparable quarter.
Quarterly Results: For the fiscal quarter ended
December 31, 2011, Abaxis reported
revenues of $37.9 million, as
compared with revenues of $35.9
million for the comparable period last year, an increase of
5 percent. Revenues from instruments, which include
chemistry analyzers, hematology instruments, VSpro
coagulation and specialty analyzers and i-STAT analyzers, decreased
by an aggregate of $210,000 or 2
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
$2.3 million, or 9 percent, over the
same period last year. Abaxis reported net income of
$2.9 million for the fiscal quarter
ended December 31, 2011, compared to
$3.8 million for the same period last
year, a decrease of 26 percent. Abaxis' effective tax
rate in the quarter ended December 31,
2011 was 37 percent, compared to 35 percent for the same
period last year. Abaxis reported diluted net income per
share of $0.13 (calculated based on
21,990,000 shares) for the three-month period ended December 31, 2011, compared to $0.17 per share (calculated based on 22,872,000
shares) for the same period last year.
Nine-Month Results: For the nine-month period ended
December 31, 2011, Abaxis reported
revenues of $113.9 million, as
compared with revenues of $106.1
million for the comparable period last year, an increase of
7 percent. Revenues from instrument sales increased by
an aggregate of $1.1 million, or 5
percent, over the same period last year. Revenues from
consumables increased by an aggregate of $7.9 million, or 10 percent, over the same period
last year. The company reported net income of
$8.4 million, compared to
$11.2 million for the same period
last year, a decrease of 25 percent. The company's
effective tax rate in the nine-month period ended December 31, 2011, was 37 percent, compared to 38
percent for the same period last year. The company reported
diluted net income per share of $0.37
(calculated based on 22,579,000 shares) for the nine-month period
ended December 31, 2011, compared to
$0.49 per share (calculated based on
22,795,000 shares) for the same period last year.
Other Reported Information: Total sales in the
medical market for the third quarter of fiscal 2012 were
$8.1 million, which were flat,
compared to the same period last year. Medical sales
worldwide, excluding sales to the U.S. government, during the third
quarter of fiscal 2012 were $7.5
million, an increase of 15 percent, compared to the same
period last year. Total sales in the veterinary market for
the third quarter of fiscal 2012 were $28.5
million, an increase of 8 percent, compared to the same
period last year. Veterinary reagent disc sales for the third
quarter of fiscal 2012 were $14.7
million, an increase of 3 percent compared to the same
period last year. Non-cash compensation expense recognized
for share-based awards during the third quarter of fiscal 2012 was
$1.5 million, compared to
$1.3 million for the same period last
year. Abaxis' Board of Directors has approved a $15.0 million increase to its existing share
repurchase program, to a total of $55.0
million.
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "Veterinary market
revenues for the quarter increased 8% despite the lingering
economic slowdown in our European markets and distributor inventory
adjustment due to the establishment of our own warehouse near
Frankfurt to provide distributors
with support in a more timely manner. We expect to see a more
stable business environment in our European markets in the coming
quarters. Although we clearly faced various challenging
conditions in the third fiscal quarter, we continued to grow total
revenues at a rate of 5% compared to the same quarter last year.
Medical market reagent disc unit sales during the quarter
were a record of 655,000 units, up 14% versus the comparable
quarter last year. We believe this is a reliable indication
that we are developing a solid position in this critical market and
we are doing it on a consistent basis."
"We continue to make strategic investments for the future growth
of our business," continued Mr. Severson. "We are in the
process of adding to our sales force, both in the U.S. and
Europe, to develop expanded market
share in those markets. We are continuing to invest in our
new Abaxis Veterinary Reference Laboratories (AVRL) to position it
as the leading outsourced laboratory provider featuring tighter
test turnarounds, superior customer service, and cost efficiencies
not available at the AVRL's competitors. We believe this is
an important business segment with the potential of significant
returns in the coming years."
Conference Call
Abaxis has scheduled a conference call to discuss its results at
4:15 p.m. Eastern Time on
Thursday, January 26, 2012.
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 10008894, through February
1, 2012. 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 and services, 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 September 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
|
Nine Months
Ended
|
|
|
December
31,
|
December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Revenues
|
$
37,850
|
$
35,906
|
$
113,878
|
$
106,136
|
|
Cost of revenues
|
17,372
|
16,097
|
52,156
|
46,793
|
|
Gross profit
|
20,478
|
19,809
|
61,722
|
59,343
|
|
Operating expenses:
|
|
|
|
|
|
Research and
development
|
2,634
|
2,947
|
9,096
|
9,321
|
|
Sales and
marketing
|
9,927
|
8,208
|
28,414
|
25,249
|
|
General and
administrative
|
3,280
|
2,820
|
11,194
|
7,596
|
|
Total operating
expenses
|
15,841
|
13,975
|
48,704
|
42,166
|
|
Income from
operations
|
4,637
|
5,834
|
13,018
|
17,177
|
|
Interest and other income
(expense), net
|
(91)
|
46
|
259
|
698
|
|
Income before income tax
provision
|
4,546
|
5,880
|
13,277
|
17,875
|
|
Income tax provision
|
1,696
|
2,045
|
4,892
|
6,711
|
|
Net income
|
$
2,850
|
$
3,835
|
$
8,385
|
$
11,164
|
|
Net income per share:
|
|
|
|
|
|
Basic net income per
share
|
$
0.13
|
$
0.17
|
$
0.38
|
$
0.50
|
|
Diluted net income per
share
|
$
0.13
|
$
0.17
|
$
0.37
|
$
0.49
|
|
|
|
|
|
|
|
Shares used in the calculation
of net income per share:
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
21,672
|
22,398
|
22,213
|
22,309
|
|
Weighted average common
shares outstanding - diluted
|
21,990
|
22,872
|
22,579
|
22,795
|
|
|
|
|
|
|
|
|
|
|
|
|
ABAXIS, INC.
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited and in
thousands)
|
|
|
|
|
|
|
December
31,
|
March
31,
|
|
|
2011
|
2011
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
$
35,368
|
$
43,471
|
|
Short-term
investments
|
22,366
|
25,981
|
|
Receivables,
net
|
26,041
|
27,880
|
|
Inventories
|
19,852
|
19,814
|
|
Prepaid expenses and
other current assets
|
5,600
|
3,496
|
|
Net deferred tax assets,
current
|
3,166
|
3,422
|
|
Total
current assets
|
112,393
|
124,064
|
|
Long-term
investments
|
30,189
|
36,237
|
|
Investment in
unconsolidated affiliate
|
2,668
|
2,769
|
|
Property and equipment,
net
|
23,448
|
19,637
|
|
Intangible assets,
net
|
4,148
|
4,216
|
|
Net deferred tax assets,
non-current
|
1,080
|
1,203
|
|
Other assets
|
106
|
134
|
|
Total
assets
|
$
174,032
|
$
188,260
|
|
|
|
|
|
Current liabilities:
|
|
|
|
Accounts
payable
|
$
6,245
|
$
6,173
|
|
Accrued payroll and
related expenses
|
5,747
|
6,129
|
|
Accrued taxes
|
-
|
559
|
|
Other accrued
liabilities
|
2,072
|
1,677
|
|
Deferred
revenue
|
1,138
|
953
|
|
Warranty
reserve
|
1,123
|
1,031
|
|
Total
current liabilities
|
16,325
|
16,522
|
|
Non-current
liabilities:
|
|
|
|
Deferred rent
|
597
|
416
|
|
Deferred
revenue
|
2,285
|
1,737
|
|
Warranty
reserve
|
482
|
191
|
|
Notes payable, less
current portion
|
808
|
746
|
|
Total
non-current liabilities
|
4,172
|
3,090
|
|
Total
liabilities
|
20,497
|
19,612
|
|
Shareholders' equity:
|
|
|
|
Common stock
|
108,558
|
132,042
|
|
Retained
earnings
|
44,991
|
36,606
|
|
Accumulated other
comprehensive loss
|
(14)
|
-
|
|
Total
shareholders' equity
|
153,535
|
168,648
|
|
Total
liabilities and shareholders' equity
|
$
174,032
|
$
188,260
|
|
|
|
|
|
|
|
|
Operating Income Per
Share
|
|
(In thousands, except per share
data)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
December
31,
|
December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Shares used in the calculation
of operating income per share:
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
21,672
|
22,398
|
22,213
|
22,309
|
|
Weighted average
common shares outstanding - diluted
|
21,990
|
22,872
|
22,579
|
22,795
|
|
|
|
|
|
|
|
Operating income per share -
basic
|
$
0.21
|
$
0.26
|
$
0.59
|
$
0.77
|
|
Operating income per share -
diluted
|
$
0.21
|
$
0.26
|
$
0.58
|
$
0.75
|
|
|
|
|
|
|
|
Revenues by Geographic
Region
|
|
(In thousands)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
December
31,
|
December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
North America
|
$
31,847
|
$
30,068
|
$
93,540
|
$
87,385
|
|
International
|
6,003
|
5,838
|
20,338
|
18,751
|
|
Total revenues
|
$
37,850
|
$
35,906
|
$
113,878
|
$
106,136
|
|
|
|
|
|
|
|
Revenues by Customer
Group
|
|
(In thousands)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
December
31,
|
December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Medical Market
|
$
8,147
|
$
8,126
|
$
22,636
|
$
21,421
|
|
Veterinary Market
|
28,467
|
26,283
|
87,684
|
79,750
|
|
Other
|
1,236
|
1,497
|
3,558
|
4,965
|
|
Total revenues
|
$
37,850
|
$
35,906
|
$
113,878
|
$
106,136
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Abaxis, Inc.