WEST LAFAYETTE, IN--(Marketwire - May 12, 2011) - Bioanalytical Systems, Inc. (NASDAQ: BASI) today reported financial results for the second quarter and first six months of fiscal 2011, highlighted by sharply higher revenue and net income versus the comparable periods of fiscal 2010.
For the second quarter ended March 31, 2011, revenue increased 21% to $8.4 million compared to $6.9 million for the second quarter of fiscal 2010. Service revenue increased 23% to $6.4 million and Products revenue increased 17% to $2.0 million. Net income for the second quarter was $483,000, or $0.10 per basic and diluted share. This compares to a net loss for the second quarter of fiscal 2010 of $1,212,000, or $0.25 per basic and diluted share.
For the first six months of fiscal 2011, revenue increased 24% to $16.5 million compared to $13.3 million for the comparable period of fiscal 2010. Service revenue increased 25% to $12.6 million and Products revenue increased 21% to $3.9 million. Net income for the first six months of fiscal 2011 was $793,000, or $0.16 per basic and diluted share. This compares to a net loss for the first six months of fiscal 2010 of $2.7 million, or $0.55 per basic and diluted share.
On May 11, 2011, BASi announced the closing of a registered public offering of units, consisting of convertible preferred stock and warrants. Net proceeds of approximately $4.7 million will be used for the purchase of laboratory equipment and for working capital and general corporate purposes.
Anthony Chilton, President and Chief Executive Officer, said, "The dramatic improvement in BASi's financial performance is compelling evidence that we have the right strategy for growth and are implementing our plan effectively. The increase in revenue reflects the success of our efforts to build business with existing clients and expand our client base, as we leverage BASi's well-established reputation for providing innovative, high quality services and products that increase efficiency and reduce the cost of taking a new drug to market. Start-ups, biotechs, generics and other new sectors of the drug development industry are especially attractive targets for our services. Our decision to offer our proprietary Culex® automated in vivo sampling and dosing system on a fee-for-service basis also is generating real interest among current and potential clients.
"Also encouraging is the improvement in gross margin, which increased to 33% for this year's first half compared to just 20% for the prior year, reflecting the beneficial impact of higher revenue on laboratory utilization and operating efficiency, as well as the company-wide cost control initiatives we introduced a year ago. In addition to their contribution to the improvement in gross margin, our cost control initiatives drove a 23% reduction in general and administrative expenses for this year's first six months versus the same period last year.
"Reinforcing our commitment to long-term growth, yesterday we announced the closing of our first equity offering since the Company's IPO in 1997. The offering strengthens our balance sheet and positions the Company to continue aggressively pursuing our growth plan. We are pleased by what we have accomplished so far, and look forward to continued success in the years ahead."
About Bioanalytical Systems, Inc.
BASi is a pharmaceutical development company providing contract research services and monitoring instruments to the world's leading drug development companies and medical research organizations. The company focuses on developing innovative services and products that increase efficiency and reduce the cost of taking a new drug to market. Visit www.BASInc.com for more about BASi.
This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to changes in the market and demand for our products and services, the development, marketing and sales of products and services, changes in technology, industry standards and regulatory standards, and various market and operating risks detailed in the company's filings with the Securities and Exchange Commission.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended March Six Months Ended March
31, 31,
------------------------- -------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Service revenue $ 6,446 $ 5,247 $ 12,589 $ 10,058
Product revenue 1,977 1,688 3,924 3,254
------------ ------------ ------------ ------------
Total revenue 8,423 6,935 16,513 13,312
Cost of service revenue 4,833 4,754 9,501 9,325
Cost of product revenue 793 696 1,499 1,306
------------ ------------ ------------ ------------
Total cost of
revenue 5,626 5,450 11,000 10,631
Gross profit 2,797 1,485 5,513 2,681
Operating expenses:
Selling 774 683 1,459 1,468
Research and
development 111 138 223 310
General and
administrative 1,262 1,944 2,643 3,431
------------ ------------ ------------ ------------
Total operating
expenses 2,147 2,765 4,325 5,209
Operating income (loss) 650 (1,281) 1,188 (2,528)
Interest expense (168) (275) (403) (516)
Other income 1 -- 8 --
------------ ------------ ------------ ------------
Income (loss) before
income taxes 483 (1,556) 793 (3,044)
Income tax benefit -- (344) -- (344)
------------ ------------ ------------ ------------
Net income (loss) $ 483 $ (1,212)$ 793 $ (2,700)
============ ============ ============ ============
Basic net income
(loss) per share $ 0.10 $ (0.25)$ 0.16 $ (0.55)
------------ ------------ ------------ ------------
Diluted net income
(loss) per share $ 0.10 $ (0.25)$ 0.16 $ (0.55)
============ ============ ============ ============
Weighted common shares
outstanding:
Basic 4,915 4,915 4,915 4,915
Diluted 5,080 4,915 5,025 4,915
