Abaxis Reports Financial Performance for the Fourth Quarter and Fiscal 2007
Fiscal 2007 Revenues Increased 25% and Net Income Increased 35% Over
Fiscal 2006
UNION CITY, Calif., April 26 /PRNewswire-FirstCall/ -- Abaxis, Inc.
(Nasdaq: ABAX), 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 Ended Twelve Months 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
SOURCE Abaxis, Inc. 04/26/2007
/CONTACT: Clint Severson, Chief Executive Officer,
Abaxis, Inc., +1-510-675-6500; or Joe Dorame,
or Robert Blum, or Joe Diaz, all of Lytham
Partners, LLC, +1-602-889-9700/
/Web site: http://www.abaxis.com/