Exhibit 99.1
ABAXIS Reports Record Financial Results
for the Fourth Quarter and Fiscal Year 2004
Full Year: Revenues up 35%; Net Income Attributable to Common Shareholders
totals $23.6 million (inclusive of a one-time income tax benefit of $19.5
million);
Net Income Attributable to Common Shareholders (before the one-time
income tax benefit) totals $4.2 million, up 938%
Fourth Quarter: Revenues up 25%; Net Income Attributable to Common
Shareholders totals $20.9 million (inclusive of a one-time income tax benefit
of $19.5 million);
Net Income Attributable to Common Shareholders (before the one-time
income tax benefit) totals $1.5 million, up 124%
UNION CITY, Calif., April 29 /PRNewswire-FirstCall/ -- ABAXIS, Inc.
(Nasdaq: ABAX), a medical products company manufacturing point-of-care blood
analysis systems, today reported record financial results for the fourth
quarter and the fiscal year ended March 31, 2004.
Highlights for the fourth quarter and full-year fiscal 2004 include:
-- Quarterly Revenues: up 25% to $12.7 million; the fifth consecutive
quarter of revenues exceeding $10 million. Annual Revenues: up 35% to
$46.9 million year-over-year.
-- One-time Income Tax Benefit of $19.5 million recorded relating to
existing deferred tax assets previously fully reserved.
-- Quarterly Diluted EPS: $0.96 (including $0.89 per share for the
one-time income tax benefit) compared to $0.04 in the same period last year.
Annual Diluted EPS: $1.16 (including $0.96 per share for the one-time income
tax benefit) versus $0.02 in the previous fiscal year.
-- Quarterly U.S. sales of $10.8 million, a 32% increase over the same
period last year.
-- Quarterly Medical sales: up 56% to $1.8 million, representing 14% of
total revenues. Annual Medical sales: up 134% to $7.1 million.
-- Quarterly recurring reagent disc and HMT reagent revenue of $7.7
million, a 27% increase over the same period last year.
-- Quarterly total reagent disc sales of 647,000 units, resulting in the
seventh consecutive quarter of record reagent disc sales.
-- Quarterly medical reagent disc sales of 68,000 units, a 76% increase
over the same period last year.
-- Quarterly veterinary reagent disc sales of 579,000 units, a 22%
increase over the same period last year.
-- Cash and short-term investments as of March 31, 2004: $17.3 million, up
66% year-over-year.
Quarterly Results: For the fourth fiscal quarter, ABAXIS reported record
revenues of $12.7 million, as compared with revenues of $10.2 million for the
comparable period last year, an increase of 25 percent. Instrument revenue and
reagent disc sales increased by 26 and 27 percent, respectively, during the
quarter compared to last year's fourth quarter. The Company reported net
income attributable to common shareholders of $20.9 million, compared to
$661,000 for the same period last year. In the fourth quarter of fiscal 2004,
the Company recorded a one-time income tax benefit of $19.5 million related to
existing deferred tax assets (principally net operating loss carryforwards)
because it concluded that it is more likely than not that these assets will be
realized. Prior to the fourth quarter of fiscal 2004, these deferred tax
assets had been fully reserved. The $19.5 million income tax benefit, which is
partially offset by a current tax provision of $89,000 for the quarter, is
included in total net income attributable to common shareholders of $20.9
million. The Company reported diluted net income per share of $0.96
(calculated based on 21,861,000 shares) which includes $0.89 per diluted share
for the one-time income tax benefit discussed above, compared to $0.04 per
share (calculated based on 17,129,000 shares) for the same period last year.
Net income for the quarter benefited from the conversion, in October 2003, of
Series D and E Preferred Stock into common shares; thereby eliminating the
Company's obligation to distribute preferred dividends in the quarter ended
March 31, 2004.
Twelve Months Results: For the twelve-month period ended March 31, 2004,
ABAXIS reported total revenues of $46.9 million as compared with revenues of
$34.8 million for the comparable period last year, an increase of 35 percent.
Net income attributable to common shareholders for the full fiscal year was
$23.6 million, compared to $401,000, in the previous fiscal year. In the
fourth quarter of fiscal 2004, the Company recorded a one-time income tax
benefit of $19.5 million related to existing deferred tax assets (principally
net operating loss carryforwards) because it concluded that it is more likely
than not that these assets will be realized. Prior to the fourth quarter of
fiscal 2004, these deferred tax assets had been fully reserved. The $19.5
million income tax benefit which is partially offset by a current tax
provision of $242,000 for the fiscal year, is included in total net income
attributable to common shareholders for fiscal 2004 of $23.6 million. The
Company reported diluted net income per share of $1.16 (calculated based on
20,387,000 shares) which includes $0.96 per diluted share for the one-time
income tax benefit discussed above compared to $0.02 per share (calculated
based on 17,012,000 shares) in the previous fiscal year. Net income for the
full fiscal year benefited from the conversion, in October 2003, of Series D
and E Preferred Stock into common shares; eliminating the Company's obligation
to distribute preferred dividends in fiscal 2004.
Other Reported Information: Recurring reagent disc and HMT reagent
revenue for the fourth fiscal quarter was $7.7 million, up 27 percent over the
$6.1 million reported in the same period last year. During the quarter, the
Company sold 647,000 medical and veterinary reagent discs, an increase of
26 percent compared to 513,000 medical and veterinary reagent discs sold
during the same period last year. The Company sold 2,791 veterinary HMT
reagent kits during the quarter, up 25 percent compared to 2,228 HMT reagent
kits sold for the same period last year.
"We are very pleased with the financial results of fiscal year 2004," said
Clint Severson, chairman, president and chief executive officer of ABAXIS,
Inc. "We are particularly proud of reporting record financial results in all
four of the quarters this fiscal year. We believe that the strong market for
our products combined with the disciplined execution of our strategic business
plan are the factors responsible for yielding these record results."
Conference Call
ABAXIS has scheduled a conference call to discuss its financial results at
4:15 p.m. EDT Thursday, April 29, 2004. 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 www.abaxis.com for the next 30 days or by calling
800-642-1687 or 706-645-9291, access code 6719462, through May 3, 2004. This
press release is also available prior to and after the call via ABAXIS'
website or the Securities Exchange Commission's website at 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, 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.
This press release includes 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," or "anticipates," and do not reflect
historical facts. Specific forward-looking statements contained in this press
release include, but are not limited to, risks and uncertainties related to
fluctuations in the Company's share price, the market acceptance of the
Company's products and the continuing development of its products, risks
associated with manufacturing and distributing its products on a commercial
scale free of defects, 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.
Summary of Financial Information
(In thousands, except per share data)
(Unaudited)
Three Months Twelve Months
Ended Ended
March 31 March 31
2004 2003 2004 2003
Net revenues $12,745 $10,176 $46,874 $34,780
Costs and operating expenses:
Cost of revenues 5,950 4,992 22,966 17,755
Selling, general and
administrative 3,967 3,273 14,431 11,564
Research and development 1,289 1,078 4,757 3,888
Total costs and operating expenses 11,206 9,343 42,154 33,207
Income from operations 1,539 833 4,720 1,573
Interest and other income 53 49 173 217
Interest and other expense (22) (36) (68) (149)
Net income before income taxes 1,570 846 4,825 1,641
Income tax provision (benefit): (19,361) (19) (19,208) 5
Net Income $20,931 $865 $24,033 $1,636
Basic net income per share (a) $1.08 $0.04 $1.30 $0.02
Diluted net income per share (a) $0.96 $0.04 $1.16 $0.02
Weighted average common shares
outstanding - basic 19,447 16,814 18,128 16,634
Weighted average common shares
outstanding - diluted 21,861 17,129 20,387 17,012
(a) Net income attributable to common shareholders used in the
computation of diluted net income per share for the three months
ended March 31, 2004 was $20,931,000. Net income attributable to
common shareholders used in the computation of diluted net income per
share for the twelve months ended March 31, 2004 was $23,614,000,
which includes dividends of $419,000. Net income attributable to
common shareholders used in the computation of diluted net income per
share for the three months ended March 31, 2003 was $661,000, which
includes dividends of $204,000. Net income attributable to common
shareholders used in the computation of diluted net income per share
for the twelve months ended March 31, 2003 was $401,000, which
includes dividends of $865,000 and a non-cash dividend charge of
$370,000 related to the beneficial conversion feature contained in
the Company's Series E Preferred Stock issued in April 2002.
ABAXIS, Inc.
Balance Sheet Data:
(Unaudited and in thousands)
March 31, March 31,
2004 2003
Current assets:
Cash and cash equivalents $9,324 $10,430
Short-term investments 7,998 --
Accounts receivables (net) 8,202 7,482
Inventories 5,736 4,982
Prepaid expenses 384 667
Net deferred tax asset - Current 609 --
Total current assets 32,253 23,561
Property and equipment, net 8,191 8,580
Deposits and other assets 830 227
Net deferred tax asset - Non-current 20,624 --
Total assets $61,898 $32,368
Current liabilities:
Accounts payable $2,721 $2,084
Dividends payable 28 408
Accrued payroll and related expenses 2,853 1,811
Other accrued liabilities 319 377
Warranty reserve 181 123
Deferred revenue 264 378
Current portion of capital lease
obligations 22 58
Current portion of long-term debt -- 467
Total current liabilities 6,388 5,706
Non-current liabilities:
Capital lease obligations, less
current portion 16 38
Long-term debt, less current portion -- 466
Deferred rent 409 321
Deferred revenue, less current
portion 474 318
Commission obligation, less current
portion 39 75
Total non-current liabilities 938 1,218
Redeemable convertible preferred
stock, Series E -- 3,176
Shareholders' equity:
Convertible preferred stock,
Series D -- 3,143
Common stock 92,441 80,608
Accumulated deficit (37,869) (61,483)
Total shareholders' equity 54,572 22,268
Total liabilities, convertible
preferred stock and shareholders'
equity $61,898 $32,368
Reconciliation of Net Income to Net Income Attributable to Common Shareholders
(in thousands)
Three Months Twelve Months
Ended Ended
March 31 March 31
2004 2003 2004 2003
Net income $20,931 $865 $24,033 $1,636
Preferred dividends -- (204) (419) (865)
Accretion of value
attributable to
beneficial
conversion feature -- -- -- (370)
Net income
attributable
to common
shareholders $20,931 $661 $23,614 $401
Pro Forma Effect of Income Tax Benefit
(in thousands)
Three Months Twelve Months
Ended Ended
March 31 March 31
2004 2003 2004 2003
Net income attributable to common
shareholders:
As reported $20,931 $661 $23,614 $401
Less one-time income tax benefit (19,450) -- (19,450) --
Pro forma net income attributable to
common shareholders: $1,481 $661 $4,164 $401
Net income per share:
As reported - basic $1.08 $0.04 $1.30 $0.02
Pro forma - basic $0.08 $0.04 $0.23 $0.02
As reported - diluted $0.96 $0.04 $1.16 $0.02
Pro forma - diluted $0.07 $0.04 $0.20 $0.02
Customer and Geographic Information
(in thousands)
Three Months Twelve Months
Ended Ended
March 31 March 31
2004 2003 2004 2003
United States $10,816 $8,180 $40,000 $29,029
International 1,929 1,996 6,874 5,751
Total revenues $12,745 $10,176 $46,874 $34,780
Customer and Market Information
(in thousands)
Three Months Twelve Months
Ended Ended
March 31 March 31
2004 2003 2004 2003
Medical Market $1,814 $1,165 $7,119 $3,037
Veterinary Market 10,466 8,531 37,875 30,313
Other 465 480 1,880 1,430
Total revenues $12,745 $10,176 $46,874 $34,780
SOURCE ABAXIS, Inc.
-0- 04/29/2004
/CONTACT: Clint Severson, Chief Executive Officer of ABAXIS, Inc.,
+1-510-675-6500; or retail, Joe Dorame, or institutional/analysts, Joe Diaz,
+1-480-675-0400, both of RCG Capital Markets Group, for ABAXIS, Inc./
/Web site: http://www.abaxis.com /
(ABAX)
CO: ABAXIS, Inc.
ST: California
IN: MTC BIO HEA
SU: ERN CCA