UNION CITY, Calif., April 26 /PRNewswire-FirstCall/ -- Abaxis, Inc. , a medical products company manufacturing point-of-care blood analysis systems, today reported financial results for the fourth fiscal quarter and the fiscal year ended March 31, 2007.
Highlights for the fourth quarter and fiscal 2007 include: -- Quarterly revenues of $22.8 million, up 15% over last year’s comparable quarter. -- Quarterly medical market sales of $4.9 million, up 64% over last year’s comparable quarter. -- Quarterly medical reagent disc sales of 283,000 units, up 56% over last year’s comparable quarter. -- Quarterly medical and veterinary reagent disc sales of 1,147,000 units, compared to 959,000 units in the same period last year, up 20% over last year’s comparable quarter. -- Quarterly instrument sales of 772 units, up 12% over last year’s comparable quarter. -- Quarterly chemistry instrument sales of 565 units, up 23% over last year’s comparable quarter. -- Record quarterly medical instrument sales of 183 units, up 101% over last year’s comparable quarter. -- Annual revenues of $86.2 million, up 25% year-over-year, and net income of $10.1 million, up 35% year-over-year. -- Annual medical market sales of $17.5 million, up 60% year-over-year. -- Annual medical reagent disc sales of 1,024,000 units, up 78% year-over-year. -- Cash, cash equivalents and short-term investments as of March 31, 2007 of $45.2 million, up 48% compared to March 31, 2006.
Quarterly Results: For the fourth fiscal quarter ended March 31, 2007, Abaxis reported revenues of $22.8 million, as compared with revenues of $19.8 million for the comparable period last year, an increase of 15 percent. Instrument, reagent disc and hematology reagent revenues increased by $3.3 million, or 18 percent over the same period last year. The company reported net income of $2.8 million, compared to $2.3 million for the same period last year. The company’s effective tax rate in the quarter ended March 31, 2007 was 40 percent, compared to 31 percent for the same period last year. The increase in the effective tax rate in the fourth quarter of fiscal 2007, as compared to the same period last year, was due to tax benefits relating to prior periods that were recorded in the fourth quarter of fiscal 2006. The company reported diluted net income per share of $0.13 (calculated based on 21,966,000 shares) in the fourth quarter of fiscal 2007, compared to $0.11 per share (calculated based on 21,721,000 shares) for the same period last year.
Fiscal 2007: For the year ended March 31, 2007, Abaxis reported revenues of $86.2 million, as compared with revenues of $68.9 million for fiscal 2006, an increase of 25 percent. Instrument, reagent disc and hematology reagent revenues increased by $16.2 million, or 25 percent over the prior year. The company reported net income of $10.1 million, compared to $7.5 million for the prior year. The company’s effective tax rate in the twelve month periods of fiscal 2007 was 38 percent, compared to 35 percent for the prior year. The company reported diluted net income per share of $0.46 (calculated based on 21,846,000 shares) in fiscal 2007, compared to $0.35 per share (calculated based on 21,492,000 shares) for the prior year.
Other Reported Information: Reagent disc and hematology reagent revenues for the fourth quarter of fiscal 2007 were $14.1 million, up 20 percent over the $11.7 million reported in the same period last year. During the quarter, the company sold 1,147,000 medical and veterinary reagent discs, an increase of 20 percent, compared to 959,000 medical and veterinary reagent discs sold during the same period last year. Total medical sales for the fourth quarter of fiscal 2007 were $4.9 million, an increase of 64 percent over last year’s comparable quarter. Medical sales in North America, excluding sales to the U.S. government, during the fourth quarter of fiscal 2007 were $3.6 million, an increase of 65 percent over last year’s comparable quarter. Total veterinary sales for the fourth quarter of fiscal 2007 were $16.8 million, up 9 percent over last year’s comparable quarter. Additionally, veterinary reagent disc sales for the fourth quarter of fiscal 2007 were $10.6 million, an increase of 11 percent, compared to the same period last year. The company ended the quarter with $45.2 million in cash, cash equivalents and short-term investments.
Clint Severson, President and Chief Executive Officer of Abaxis, said, “Fiscal 2007 was a very strong year for Abaxis on a number of different fronts. We are particularly pleased that medical sales increased 60% during the year, and for fiscal 2007 represented 20% of total revenues. Medical sales continue to grow in terms of actual dollars and as a percentage of total sales. This is an important growth driver for the business and we believe that this trend will continue for the foreseeable future.”
“The recurring revenue component of our business, reagent disc sales, continues to grow at a strong annual rate. In fiscal 2007, reagent disc sales, including both medical and veterinary, exceeded 4.1 million units; an increase of 21% over last year. Additionally, during fiscal 2007 we introduced the next generation of blood analysis systems: the VetScan VS2(R) for the veterinary market and the Piccolo xpress(TM) for the medical market.”
Mr. Severson continued, “During the year we were also granted CLIA-waived status by the U.S. Food and Drug Administration for ten additional analytes for our Piccolo reagent discs. In fiscal 2008, we expect to submit seven new analytes to the FDA for CLIA waiver consideration. We expect that these waivers, if obtained, will have the potential to significantly drive Piccolo system sales in the coming years.”
Conference Call
Abaxis has scheduled a conference call to discuss its results at 4:15 p.m. ET on April 26, 2007. Participants can dial (877) 356-5706 or (706) 643-0580 to access the conference call, or can listen via a live Internet web cast, which can be found at www.abaxis.com. A replay of the call is available by visiting http://www.abaxis.com for the next 30 days or by calling (800) 642- 1687 or (706) 645-9291, access code 4764557, through April 29, 2007. 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 and markets 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, 6.9 kilogram (15 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 14 minutes with the precision and accuracy equivalent to a clinical laboratory analyzer.
Use of Non-GAAP Financial Measures
To supplement the financial statements presented in accordance with generally accepted accounting principles (GAAP), Abaxis uses non-GAAP measures of operating income per share on a pro forma basis. This non-GAAP financial presentation is not a measurement of performance under generally accepted accounting principles in the United States of America. Management uses this measure in comparing Abaxis’ 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 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”). 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 our conference call include, but are not limited to, risks and uncertainties related to the market acceptance of the company’s 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 entering the human diagnostic market on a larger scale, risks related to the protection of the company’s intellectual property or claims of infringement of intellectual property asserted by third parties, risks involved in carrying of inventory, risks associated with the ability to attract, train and retain competent sales personnel, general market conditions, competition and other risks detailed from time to time in Abaxis’ periodic reports filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement was made. Abaxis does not undertake and specifically disclaims any obligation to update any forward-looking statements.
ABAXIS, Inc. Condensed Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Twelve Months Ended Ended March 31, March 31, 2007 2006 2007 2006 Revenues $22,808 $19,798 $86,221 $68,928 Cost of revenues 10,523 8,703 39,362 30,075 Gross profit 12,285 11,095 46,859 38,853 Operating expenses: Research and development 1,449 1,573 6,180 6,127 Sales and marketing 5,263 4,963 20,569 16,219 General and administrative 1,503 1,627 5,735 5,775 Total operating expenses 8,215 8,163 32,484 28,121 Income from operations 4,070 2,932 14,375 10,732 Interest and other income (expense), net 580 441 1,774 787 Income before income taxes 4,650 3,373 16,149 11,519 Income tax provision 1,868 1,048 6,076 4,044 Net income $2,782 $2,325 $10,073 $7,475 Net income per share: Basic net income per share $0.13 $0.12 $0.49 $0.37 Diluted net income per share $0.13 $0.11 $0.46 $0.35 Shares used in the calculation of net income per share: Weighted average common shares outstanding - basic 20,936 20,096 20,643 19,985 Weighted average common shares outstanding - diluted 21,966 21,721 21,846 21,492 ABAXIS, Inc. Condensed Balance Sheets (Unaudited and in thousands) March 31, March 31, 2007 2006 Current assets: Cash and cash equivalents $10,183 $10,164 Short-term investments 35,028 20,372 Trade receivables, net 16,929 14,638 Inventories, net 14,813 10,396 Prepaid expenses 1,321 446 Net deferred tax asset - current 8,979 4,294 Total current assets 87,253 60,310 Property and equipment, net 12,662 10,038 Intangible assets, net 450 525 Deposits and other assets 38 80 Net deferred tax asset - non-current 2,312 12,125 Total assets $102,715 $83,078 Current liabilities: Accounts payable $6,505 $4,614 Accrued payroll and related expenses 3,830 3,890 Other accrued liabilities 1,169 705 Warranty reserve 315 213 Deferred revenue 917 939 Total current liabilities 12,736 10,361 Non-current liabilities: Deferred rent 391 478 Deferred revenue, less current portion 1,244 938 Other long-term liabilities 532 263 Total non-current liabilities 2,167 1,679 Shareholders’ equity: Common stock 103,282 96,506 Accumulated deficit (15,470) (25,543) Accumulated other comprehensive income - 75 Total shareholders’ equity 87,812 71,038 Total liabilities and shareholders’ equity $102,715 $83,078 Non-GAAP Operating Income Per Share (In thousands, except per share data) Three Months Twelve Months Ended Ended March 31, March 31, 2007 2006 2007 2006 Shares used in the calculation of operating income per share (non- GAAP): Weighted average common shares outstanding - basic 20,936 20,096 20,643 19,985 Weighted average common shares outstanding - diluted 21,966 21,721 21,846 21,492 Non-GAAP operating income per share - basic $0.19 $0.15 $0.70 $0.54 Non-GAAP operating income per share - diluted $0.19 $0.13 $0.66 $0.50 Revenues by Geographic Region (in thousands) Three Months Twelve Months Ended Ended March 31, March 31, 2007 2006 2007 2006 North America $19,363 $16,932 $72,015 $58,747 International 3,445 2,866 14,206 10,181 Total revenues $22,808 $19,798 $86,221 $68,928 Revenues by Customer Group (in thousands) Three Months Twelve Months Ended Ended March 31, March 31, 2007 2006 2007 2006 Medical Market $4,949 $3,009 $17,455 $10,888 Veterinary Market 16,838 15,387 63,851 53,841 Other 1,021 1,402 4,915 4,199 Total revenues $22,808 $19,798 $86,221 $68,928
Abaxis, Inc.
CONTACT: Clint Severson, Chief Executive Officer, Abaxis, Inc.,+1-510-675-6500; or Joe Dorame, or Robert Blum, or Joe Diaz, all of LythamPartners, LLC, +1-602-889-9700
Web site: http://www.abaxis.com//
