UNION CITY, Calif.,
Oct. 27, 2015 /PRNewswire/
-- Abaxis, Inc. (NasdaqGS: ABAX), a global diagnostics company
manufacturing point-of-care blood analysis instruments and
consumables for the medical and veterinary markets worldwide, today
reported financial results for the second fiscal quarter ended
September 30, 2015.
Second quarter overview:
- Revenues from continuing operations of $56.0 million, up 11% over last year's comparable
quarter.
- Diluted EPS from continuing operations of $0.34, up 36% over last year's comparable
quarter.
- Diluted EPS, including discontinued operations, of $0.34, up 42% over last year's comparable
quarter.
Revenues highlights:
- North America revenues of
$45.2 million, up 10% over last
year's comparable quarter.
- International revenues of $10.8
million, up 14% over last year's comparable quarter.
- Medical market revenues of $8.6
million, up 13% over last year's comparable quarter.
- Veterinary market revenues from continuing operations of
$46.6 million, up 11% over last
year's comparable quarter.
- Total medical and veterinary instrument revenues of
$11.6 million, up 15% over last
year's comparable quarter.
- Total medical and veterinary instrument sales of 1,505 units,
up 5% over last year's comparable quarter.
- Total medical and veterinary reagent disc revenues of
$30.7 million, up 10% over last
year's comparable quarter.
- Total medical and veterinary reagent disc sales of 2.4 million
units, up 12% over last year's comparable quarter.
Other financial highlights:
- Gross profit from continuing operations of $32.0 million, up 14% over last year's comparable
quarter.
- Net income from continuing operations of $7.8 million, up 37% over last year's comparable
quarter.
- Cash, cash equivalents and investments of $155.2 million as of September 30, 2015.
- Abaxis paid dividends of $2.5
million or $0.11 per share
during the second quarter of fiscal 2016.
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "Our performance for
the first half of fiscal year 2016 remains strong. Revenues
from continuing operations for the second quarter increased by 11%
over last year's comparable quarter to $56.0
million, driven by double-digit revenue increases in
North America and
internationally. Diluted earnings per share from continuing
operations increased by 36% over last year's comparable quarter to
$0.34. Revenues in North America increased by 10%, while
international revenues increased by 14% over last year's comparable
quarter. Our gross profit margin from continuing operations
expanded to 57.1%, compared to 55.6% in last year's second quarter,
and compared to 55.4% in the first quarter of fiscal 2016. We
remain pleased with the contributions of our sales team and our
distribution partners, and the efforts of both have been important
contributors to our growth."
Mr. Severson continued, "Looking ahead, we have a number of
on-going research and development initiatives under way that we
believe will make significant contributions to future operational
results, which include the development of electronic connectivity
technology as well as a number of high sensitivity immunoassay
projects that are expected to expand our offerings to the
veterinary and medical markets. We are also executing on
pilot projects in Canada through
Jack Nathan Health in a number of Walmart Care Clinics throughout
the country that we believe could lead to mutually beneficial
partnerships. On a more current basis, our partnership with
Abbott is working very well, as evidenced by the reagent disc
growth over the last several quarters. We continue to operate
the company very efficiently from internal cash flow, with a solid
cash, cash equivalents and investments position of $155.2 million as of September 30, 2015. We remain committed to
driving continued revenue and income growth, while rewarding our
shareholders with a quarterly cash dividend."
Results of Continuing Operations
Quarterly Results
For the fiscal quarter ended September
30, 2015, Abaxis reported revenues from continuing
operations of $56.0 million, as
compared with revenues of $50.5
million for the comparable period last year, an increase of
11 percent. Revenues from sales of instruments, which include
chemistry analyzers, hematology instruments, VSpro specialty
analyzers and i‑STAT analyzers, increased by $1.5 million, or 15 percent, over the same period
last year. Revenues from sales of consumables, which include
reagent discs, hematology reagent kits, VSpro specialty
cartridges, i‑STAT cartridges and rapid tests, increased by
$3.5 million, or 9 percent, over the
same period last year. Abaxis reported net income from
continuing operations of $7.8 million
for the fiscal quarter ended September 30,
2015, compared to $5.7 million
for the fiscal quarter ended September
30, 2014. Abaxis' effective tax rate in the quarter
ended September 30, 2015 was 36
percent, compared to 36 percent for the same period last
year. Abaxis reported diluted net income per share from
continuing operations of $0.34
(calculated based on 22,863,000 shares) for the fiscal quarter
ended September 30, 2015, compared to
$0.25 per share (calculated based on
22,690,000 shares) for the same period last year.
Six-Month Results
For the six-month period ended September
30, 2015, Abaxis reported revenues from continuing
operations of $109.1 million, as
compared with revenues of $94.5
million for the comparable period last year, an increase of
15 percent. Revenues from instrument sales increased by
$2.6 million, or 15 percent, over the
same period last year. Revenues from consumables sales
increased by $11.0 million, or 15
percent, over same period last year. Abaxis reported net
income from continuing operations of $14.8
million for the six-month period ended September 30, 2015, compared to $10.8 million for the same period last
year. Abaxis' effective tax rate in the six month-period
ended September 30, 2015 was 36
percent, compared to 37 percent for the same period last
year. Abaxis reported diluted net income per share from
continuing operations of $0.65
(calculated based on 22,876,000 shares) for the six-month period
ended September 30, 2015, compared to
$0.48 per share (calculated based on
22,678,000 shares) for the same period last year.
Other Reported Information
Non-cash compensation expense recognized for share-based awards
during the second quarter of fiscal 2016 was $3.0 million, compared to $2.5 million for the same period last year.
Abaxis paid $2.5 million in cash
dividends to shareholders during the second quarter of fiscal
2016.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Tuesday, October 27, 2015.
Participants can dial (877) 317-6789 or (412) 317-6789 to access
the conference call, or can listen via a live Internet webcast,
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 10074428, through November
3, 2015. 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, Inc. is a worldwide developer, manufacturer and marketer
of portable blood analysis systems that are used in a broad range
of medical specialties in human or veterinary patient care to
provide clinicians with rapid blood constituent measurements.
Our mission is to improve the efficiency of care delivery to and
the quality of life of patients in the medical and veterinary
markets. We provide leading edge technology and tools that
support best medical practices, enabling physicians and
veterinarians to respond to the health needs of their clients at
the point of care while operating economical and profitable
practices. For more information, visit
http://www.abaxis.com.
Forward Looking Statements
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' research and development initiatives and their
potential contribution to future operational results, ability of
pilots to lead to mutually beneficial partnerships, payment of
future cash dividends, financial resources and potential for future
growth, market acceptance and penetration of new or expanded
product offerings, and future revenues, income 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
risks related to Abaxis' manufacturing operations, including the
vulnerability of its manufacturing operations to potential
interruptions and delays and its ability to manufacture products
free of defects, the effect of exchange rate fluctuations on
international operations, fluctuations in quarterly operating
results and difficulty in predicting future results, Abaxis'
dependence on Abbott Point of Care, Inc. for its U.S. medical
sales, the performance of Abaxis' independent distributors and
Abaxis' ability to manage their inventory levels effectively,
dependence on sole or limited source suppliers, the market
acceptance of Abaxis' products, expansion of Abaxis' sales and
marketing and distribution efforts, dependence on key personnel,
the continuing development of its products, required United States
Food and Drug Administration clearance and other government
approvals, 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. Readers
should also refer to the section entitled "Risk Factors" in Abaxis'
annual report on Form 10‑K, and subsequently filed quarterly
reports on Form 10‑Q filed 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 to Follow
ABAXIS,
INC.
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
(In thousands,
except per share data)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
2014
|
|
2015
|
2014
|
Revenues
|
$ 55,975
|
$ 50,471
|
|
$ 109,065
|
$ 94,525
|
Cost of
revenues
|
24,013
|
22,395
|
|
47,711
|
42,746
|
Gross
profit
|
31,962
|
28,076
|
|
61,354
|
51,779
|
Operating
expenses:
|
|
|
|
|
|
Research
and development
|
4,689
|
4,232
|
|
9,412
|
8,179
|
Sales
and marketing
|
10,785
|
10,619
|
|
21,371
|
19,451
|
General
and administrative
|
4,319
|
3,797
|
|
7,777
|
6,705
|
Total operating
expenses
|
19,793
|
18,648
|
|
38,560
|
34,335
|
Income from
operations
|
12,169
|
9,428
|
|
22,794
|
17,444
|
Interest and
other income (expense), net
|
126
|
(445)
|
|
485
|
(398)
|
Income from
continuing operations before income tax provision
|
12,295
|
8,983
|
|
23,279
|
17,046
|
Income tax
provision
|
4,472
|
3,271
|
|
8,461
|
6,260
|
Income from
continuing operations
|
7,823
|
5,712
|
|
14,818
|
10,786
|
Discontinued
operations
|
|
|
|
|
|
Loss from
discontinued operations, net of tax
|
(7)
|
(312)
|
|
(7)
|
(671)
|
Net income
|
$ 7,816
|
$ 5,400
|
|
$ 14,811
|
$ 10,115
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
Basic
|
|
|
|
|
|
Continuing operations
|
$ 0.34
|
$ 0.25
|
|
$ 0.65
|
$ 0.48
|
Discontinued operations
|
-
|
(0.01)
|
|
-
|
(0.03)
|
Basic net
income per share
|
$ 0.34
|
$ 0.24
|
|
$ 0.65
|
$ 0.45
|
Diluted
|
|
|
|
|
|
Continuing operations
|
$ 0.34
|
$ 0.25
|
|
$ 0.65
|
$ 0.48
|
Discontinued operations
|
-
|
(0.01)
|
|
-
|
(0.03)
|
Diluted net
income per share
|
$ 0.34
|
$ 0.24
|
|
$ 0.65
|
$ 0.45
|
Shares used in the
calculation of net income per share:
|
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
22,701
|
22,507
|
|
22,663
|
22,458
|
Weighted
average common shares outstanding - diluted
|
22,863
|
22,690
|
|
22,876
|
22,678
|
Cash dividends
declared per share
|
$ 0.11
|
$ 0.10
|
|
$ 0.22
|
$ 0.20
|
ABAXIS,
INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited and in
thousands)
|
|
September
30,
|
March
31,
|
|
2015
|
2015
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
83,633
|
$ 107,015
|
Short-term
investments
|
49,508
|
26,109
|
Receivables,
net
|
30,398
|
29,015
|
Inventories
|
34,450
|
36,179
|
Prepaid
expenses and other current assets
|
5,669
|
2,893
|
Net deferred
tax assets, current
|
6,576
|
6,575
|
Current assets
of discontinued operations
|
101
|
2,075
|
Total
current assets
|
210,335
|
209,861
|
Long-term
investments
|
22,088
|
24,181
|
Investment in
unconsolidated affiliate
|
2,714
|
2,683
|
Property and
equipment, net
|
27,260
|
27,316
|
Intangible assets,
net
|
1,401
|
1,491
|
Net deferred tax
assets, non-current
|
3,682
|
3,413
|
Non-current assets of
discontinued operations
|
-
|
12
|
Other
assets
|
661
|
107
|
Total
assets
|
$
268,141
|
$ 269,064
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
7,710
|
$ 7,277
|
Accrued payroll
and related expenses
|
9,262
|
11,094
|
Accrued
taxes
|
355
|
4,829
|
Current
liabilities of discontinued operations
|
245
|
5,536
|
Other accrued
liabilities
|
8,434
|
9,804
|
Deferred
revenue
|
1,464
|
1,322
|
Warranty
reserve
|
1,220
|
1,423
|
Total
current liabilities
|
28,690
|
41,285
|
Non-current
liabilities:
|
|
|
Deferred
revenue
|
2,751
|
3,219
|
Warranty
reserve
|
1,604
|
1,733
|
Net deferred
tax liabilities
|
310
|
310
|
Notes payable,
less current portion
|
430
|
480
|
Other
non-current liabilities
|
1,833
|
1,843
|
Total
non-current liabilities
|
6,928
|
7,585
|
Total
liabilities
|
35,618
|
48,870
|
Shareholders'
equity:
|
|
|
Common
stock
|
135,069
|
132,559
|
Retained
earnings
|
97,461
|
87,643
|
Accumulated
other comprehensive loss
|
(7)
|
(8)
|
Total
shareholders' equity
|
232,523
|
220,194
|
Total
liabilities and shareholders' equity
|
$
268,141
|
$ 269,064
|
Revenues by
Geographic Region and Customer Group
|
(Unaudited and in
thousands)
|
|
The following table
presents our revenues by source for the three and six months ended
September 30, 2015 and 2014.
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September
30,
|
|
September
30,
|
Revenues by
Geographic Region
|
2015
|
2014
|
|
2015
|
2014
|
North
America
|
$ 45,176
|
$ 41,039
|
|
$ 87,487
|
$ 75,956
|
International
|
10,799
|
9,432
|
|
21,578
|
18,569
|
Total
revenues
|
$ 55,975
|
$ 50,471
|
|
$ 109,065
|
$ 94,525
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September
30,
|
|
September
30,
|
Revenues by
Customer Group
|
2015
|
2014
|
|
2015
|
2014
|
Medical
Market
|
$ 8,631
|
$ 7,616
|
|
$ 17,315
|
$ 14,861
|
Veterinary
Market
|
46,599
|
42,096
|
|
90,188
|
78,040
|
Other
|
745
|
759
|
|
1,562
|
1,624
|
Total
revenues
|
$ 55,975
|
$ 50,471
|
|
$ 109,065
|
$ 94,525
|
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SOURCE Abaxis, Inc.