Exhibit 99.1
ABAXIS Reports Record Financial Results for the First Quarter of Fiscal 2005
Record Quarterly Reagent Disc Sales of 701,000 Units as Total Quarterly
Revenues Up 28% From Prior Year Period
UNION CITY, Calif., July 22 /PRNewswire-FirstCall/ -- ABAXIS, Inc.
(Nasdaq: ABAX), a medical products company manufacturing point-of-care blood
analysis systems, today reported record financial results for the first fiscal
quarter ended June 30, 2004. Highlights include:
-- Quarterly revenues of $13.2 million, a 28% increase over the same
period last year.
-- Diluted EPS: $0.07 versus $0.04 in the same period last year.
-- U.S. sales of $11.5 million, a 28% increase over the same period last
year.
-- International sales of $1.7 million, a 27% increase, compared to the
same period last year.
-- Medical sales: up 39% to $2.2 million, representing 17% of total
revenues.
-- Quarterly recurring reagent disc and hematology reagent revenue of
$8.5 million, a 31% increase over the same period last year.
-- Quarterly total reagent disc sales of 701,000 units, a 31% increase
over the same period last year.
-- Quarterly medical reagent disc sales of 89,000 units, a 62% increase
over the same period last year.
-- Quarterly veterinary reagent disc sales of 612,000 units, a
28% increase over the same period last year.
Quarterly Results: For the first fiscal quarter, ABAXIS reported record
revenues of $13.2 million, compared with revenues of $10.3 million for the
comparable period last year, an increase of 28 percent. Instrument revenue and
recurring reagent disc and hematology reagent revenue increased by 32 and
31 percent, respectively, over the same period last year. The Company
reported net income attributable to common shareholders of $1.4 million,
compared to $659,000 for the same period last year; an increase of
118 percent. 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 June 30, 2004. The Company's effective tax rate in the quarter
ended June 30, 2004 was 39% compared to 3% in the same period last year. The
Company reported diluted net income per share of $0.07 (calculated based on
21,901,000 shares), compared to $0.04 per share (calculated based on
17,480,000 shares) for the same period last year.
Other Reported Information: Recurring reagent disc and hematology reagent
revenue for the first fiscal quarter was $8.5 million, up 31 percent over the
$6.5 million reported in the same period last year. During the quarter, the
Company sold 701,000 medical and veterinary reagent discs, an increase of
31 percent compared to 534,000 medical and veterinary reagent discs sold
during the same period last year. The Company sold 2,974 veterinary
hematology reagent kits during the quarter, up 32 percent compared to
2,256 hematology reagent kits sold for the same period last year. The Company
ended the quarter with $18.7 million in cash, cash equivalents and short-term
investments and no long-term debt.
Clint Severson, chairman, president and chief executive officer of ABAXIS,
Inc., said, "The results of the first quarter reflect our continued focus on
the execution of our strategic business plan. During the quarter we achieved
strong operating results geographically -- domestically up 28 percent and
internationally up 27 percent -- and along all product lines, compared to the
same period last year. We are especially pleased with the strong increase in
medical reagent disc sales on a comparable basis, as well as the continued
strength in our flagship veterinary business. We are pleased to be off to a
strong start for fiscal year 2005."
Mr. Severson continued, "During the quarter the U.S. Food and Drug
Administration granted CLIA waiver status for our lipids test panel when used
in conjunction with the ABAXIS Piccolo point of care analyzer. We are pleased
with the recognition that our lipids panel and the Piccolo analyzer deliver
high accuracy results from multiple analytes in a point of care setting
without the requirement of specialized staff training. Rapid turnaround,
accuracy of results and convenience are the hallmarks of ABAXIS technology.
We are gratified with this CLIA waiver determination by the F.D.A."
Also during the quarter ABAXIS signed an agreement with Henry Schein, Inc.
to sell and distribute the ABAXIS VetScan Chemistry and Hematology Systems,
along with the associated consumable merchandise. Henry Schein's Veterinary
Division serves more than 70 percent of the estimated 24,000 veterinary
clinics in the United States.
Conference Call
ABAXIS has scheduled a conference call to discuss its financial results at
4:15 p.m. EDT Thursday, July 22, 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 8767446, through July 26, 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 (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.
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, required
United States Food and Drug Administration ("FDA") 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.
Summary of Financial Information
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30
2004 2003
Net revenues $13,242 $10,326
Costs and operating expenses:
Cost of revenues 6,074 5,220
Selling, general and administrative 3,641 3,217
Research and development 1,237 1,032
Total costs and operating expenses 10,952 9,469
Income from operations 2,290 857
Interest and other income 60 48
Interest and other expense (6) (18)
Net income before income taxes 2,344 887
Income tax provision 910 24
Net Income $1,434 $863
Basic net income per share (a) $0.07 $0.04
Diluted net income per share (a) $0.07 $0.04
Weighted average common shares
outstanding - basic 19,575 16,921
Weighted average common shares
outstanding - diluted 21,901 17,480
(a) Net income attributable to common shareholders used in the computation
of diluted net income per share for the three months ended June 30,
2004 was $1,434,000. Net income attributable to common shareholders
used in the computation of diluted net income per share for the three
months ended June 30, 2003 was $659,000, which includes dividends of
$204,000.
ABAXIS, Inc.
Balance Sheet Data:
(Unaudited and in thousands)
June 30, March 31,
2004 2004
Current assets:
Cash and cash equivalents $10,670 $9,324
Short-term investments 7,998 7,998
Trade receivables (net) 9,023 8,202
Inventories 5,829 5,736
Prepaid expenses 439 384
Net deferred tax asset - current 1,026 609
Total current assets 34,985 32,253
Property and equipment, net 8,352 8,191
Intangible assets, net 656 675
Deposits and other assets 135 155
Net deferred tax asset - non-current 19,718 20,624
Total assets $63,846 $61,898
Current liabilities:
Accounts payable $2,548 $2,721
Dividends payable -- 28
Accrued payroll and related expenses 2,387 2,853
Other accrued liabilities 507 319
Warranty reserve 164 181
Deferred revenue 266 264
Current portion of capital lease obligations 21 22
Total current liabilities 5,893 6,388
Non-current liabilities:
Capital lease obligations, less current portion 11 16
Deferred rent 425 409
Deferred revenue, less current portion 546 474
Commission obligation, less current portion 33 39
Total non-current liabilities 1,015 938
Shareholders' equity:
Common stock 93,373 92,441
Accumulated deficit (36,435) (37,869)
Total shareholders' equity 56,938 54,572
Total liabilities and shareholders'
equity $63,846 $61,898
Reconciliation of Net Income to Net Income Attributable to Common
Shareholders
(in thousands)
Three Months Ended
June 30
2004 2003
Net income $1,434 $863
Preferred dividends -- (204)
Net income attributable to common shareholders $1,434 $659
Customer and Geographic Information
(in thousands)
Three Months Ended
June 30
2004 2003
United States $11,512 $8,962
International 1,730 1,364
Total revenues $13,242 $10,326
Customer and Market Information
(in thousands)
Three Months Ended
June 30
2004 2003
Medical Market $2,240 $1,607
Veterinary Market 10,510 8,246
Other 492 473
Total revenues $13,242 $10,326
SOURCE ABAXIS, Inc.
-0- 07/22/2004
/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: HEA MTC BIO
SU: ERN