WEST LAFAYETTE, IN -- (MARKET WIRE) -- 12/22/2005 -- Bioanalytical Systems, Inc. (NASDAQ: BASI) today reported financial results for its fourth quarter and fiscal year ended September 30, 2005. Revenue for the quarter ended September 30, 2005 increased 35% to $12.3 million compared to $9.1 million for the quarter ended September 30, 2004. Net income for the fourth quarter of fiscal 2005 was $142,000, or $0.03 per basic and diluted share, compared to a net loss of $205,000, or $0.04 loss per basic and diluted share for the fourth quarter of fiscal 2004. Increased sales efforts resulted in better capacity utilization and a 60% increase in service revenue in the fourth quarter of the current year over the prior year. Product revenues declined 6% from the same quarter in fiscal 2004. Revenue for the fiscal year ended September 30, 2005 increased 14% to $42.4 million from $37.2 million for the fiscal year ended September 30, 2004. Net income for the fiscal year ended September 30, 2005 was $5,000, or $0.00 per basic and diluted share, compared to a net loss of $203,000, or $0.04 per basic and diluted share, for the fiscal year ended September 30, 2004. Net income for the current fiscal year includes the effect of a tax provision which was nearly equal to pre-tax earnings as a result of foreign losses not being available to offset domestic earnings compared to an income tax benefit of $404,000 in fiscal 2004 ($0.08 per share). Both fiscal 2005 and 2004 included the results of the two acquisitions completed in 2003 for all of the comparable periods. Service revenue for fiscal 2005 increased 32% compared to the prior year due to continuing strong demand for the Company’s analytical services, a continuing improvement in toxicology services sales, as well as strong sales growth in the clinical research unit. Product revenues for the current fiscal year declined by 22% from fiscal 2004. Cost of revenue for the fourth fiscal quarter ended September 30, 2005 was $8.1 million, or 66% of revenue, compared to $6.6 million, or 73% of revenue, for the fourth quarter ended September 30, 2004. Cost of revenue for the year ended September 30, 2005 was $27.0 million, or 64% of revenue, compared to $25.6 million, or 69% of revenue, for the year ended September 30, 2004. The improvement of the margins for both the quarter and full year of fiscal 2005 reflect the fact that a significant portion of the Company’s costs in its services segment are relatively fixed, which results in increased margin percentages when there is strong growth in that segment. Peter T. Kissinger, Chairman and CEO commented, “The past fiscal year was one where we saw the results of strong efforts by our people in completing the integration of our 2003 acquisitions. Our laboratory in Oregon had very solid operating results, our clinic in Baltimore increased revenues by 30% and is nearing break-even, and our toxicology facility made a positive contribution after several years of hard work to broaden its market. Our UK operations suffered from poor sales and marketing, a situation we are currently addressing, and after a very good year in Culex sales last year, we experienced softness this year. We are addressing that issue in the current year through a refocused sales effort.”
