UNION CITY, Calif.,
July 23, 2015 /PRNewswire/
-- Abaxis, Inc. (NasdaqGS: ABAX), a medical products company
manufacturing point-of-care blood analysis systems, today reported
financial results for the first fiscal quarter ended June 30, 2015.
First quarter overview:
- Revenues from continuing operations of $53.1 million, up 21% over last year's comparable
quarter.
- Diluted EPS from continuing operations of $0.31, up 35% over last year's comparable
quarter.
- Diluted EPS, including discontinued operations, of $0.31, up 48% over last year's comparable
quarter.
Revenues highlights:
- North America revenues from
continuing operations of $42.3
million, up 21% over last year's comparable quarter.
- International revenues of $10.8
million, up 18% over last year's comparable quarter.
- Medical market revenues of $8.7
million, up 20% over last year's comparable quarter.
- Veterinary market revenues of $43.6
million, up 21% over last year's comparable quarter.
- Total medical and veterinary instrument revenues of
$8.7 million, up 15% over last year's
comparable quarter.
- Total medical and veterinary instrument sales of 1,322 units,
up 23% over last year's comparable quarter.
- Total medical and veterinary reagent disc revenues of
$30.4 million, up 13% over last
year's comparable quarter.
- Total medical and veterinary reagent disc sales of 2.4 million
units, up 15% over last year's comparable quarter.
Other financial highlights:
- Gross profit from continuing operations of $29.4 million, up 24% over last year's comparable
quarter.
- Net income from continuing operations of $7.0 million, up 38% over last year's comparable
quarter.
- Cash, cash equivalents and investments of $153.0 million as of June
30, 2015.
- Abaxis paid dividends of $2.5
million or $0.11 per share
during the first quarter of fiscal 2016.
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "We are off to a
strong start in fiscal year 2016, as we achieved double-digit
growth in our total instrument and consumable revenues within our
portfolio of point of care diagnostic products. Revenues for
the quarter increased 21 percent, driven by total veterinary sales
and total medical sales increases of 21 percent and 20 percent,
respectively. Domestic and international sales both increased
by double-digit percentages versus the first quarter last year.
We are pleased with the on-going progress made by our sales
team and our distribution channel partners. We continue to
grow our business on a consistent basis and we are operating in a
highly effective and cost efficient manner."
Mr. Severson continued, "We are particularly pleased with the
continued growth in our recurring revenues up 22 percent year over
year, primarily due to expanding sales of our consumable products
in both the veterinary and medical markets, which resulted in a
record of 2.4 million total reagent disc unit sales during the
first quarter. This is a testament to the critically
important role that our devices play in accurately diagnosing the
conditions of our customers' patients. The speed, accuracy
and reliability of Abaxis products are second to none and we are
proud of our position within in the industry as one of the leaders
in the market. We remain dedicated to developing new
innovative diagnostic products and operating the business in a
prudent manner, while rewarding our shareholders with a quarterly
dividend and maintaining a solid cash position of $153.0 million."
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly dividend of $0.11 per
common share, to be paid on September 17,
2015, to all shareholders of record as of the close of
business on September 3, 2015.
Results of Continuing Operations
Quarterly Results
For the fiscal quarter ended June 30,
2015, Abaxis reported revenues from continuing operations of
$53.1 million, as compared with
revenues of $44.1 million for the
comparable period last year, an increase of 21 percent.
Revenues from sales of instruments, which include chemistry
analyzers, hematology instruments, VSpro specialty analyzers
and i‑STAT analyzers, increased by $1.1
million, or 15 percent, compared to the same period last
year. Revenues from sales of consumables, which include
reagent discs, hematology reagent kits, VSpro specialty
cartridges, i‑STAT cartridges and rapid tests, increased by
$7.5 million, or 22 percent, compared
to the same period last year. Abaxis reported net income from
continuing operations of $7.0 million
for the fiscal quarter ended June 30,
2015, compared to $5.1 million
for the fiscal quarter ended June 30,
2014. Abaxis' effective tax rate in the quarter ended
June 30, 2015 was 36 percent,
compared to 37 percent for the same period last year. Abaxis
reported diluted net income per share from continuing operations of
$0.31 (calculated based on 22,879,000
shares) for the three-month period ended June 30, 2015, compared to $0.23 per share (calculated based on 22,637,000
shares) for the same period last year.
Other Reported Information
Non-cash compensation expense recognized for share-based awards
during the first quarter of fiscal 2016 was $2.8 million, compared to $2.0 million for the same period last year.
Abaxis paid $2.5 million in cash
dividends to shareholders during the first quarter of fiscal
2016.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, July 23, 2015.
Participants can dial (877) 317-6789 or (412) 317-6789 to access
the conference call, or can listen via a live Internet webcast,
which is available in the Investor Relations section of the
company's website at http://www.abaxis.com. A replay of the
call will be available by visiting http://www.abaxis.com for
the next 30 days or by calling (877) 344-7529 or (412) 317-0088,
confirmation code 10069542, through July
30, 2015. 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, Inc. is a worldwide developer, manufacturer and marketer
of portable blood analysis systems that are used in a broad range
of medical specialties in human or veterinary patient care to
provide clinicians with rapid blood constituent measurements.
Our mission is to improve the efficiency of care delivery to and
the quality of life of patients in the medical and veterinary
markets. We provide leading edge technology, tools and
services that support best medical practices, enabling physicians
and veterinarians to respond to the health needs of their clients
at the point of care while operating economical and profitable
practices. For more information, visit
http://www.abaxis.com.
Forward Looking Statements
This press release includes, 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"), including but not limited to statements
related to Abaxis' cash position, financial resources and potential
for future growth, market acceptance and penetration of new or
planned product offerings, and future recurring revenues and
results of operations. 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 Abaxis' conference call may
be affected by risks and uncertainties, including, but not limited
to, those related to risks related to the transition of its U.S.
medical sales to Abbott, potential excess inventory levels and
inventory imbalances at the company's distributors, losses or
system failures with respect to Abaxis' facilities or manufacturing
operations, the effect of exchange rate fluctuations on
international operations, fluctuations in quarterly operating
results, dependence on sole suppliers, the market acceptance of
Abaxis' products and services, 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
competing in the human diagnostic market, risks related to the
protection of Abaxis' intellectual property or claims of
infringement of intellectual property asserted by third parties and
risks related to condition of the United
States economy. Readers should also refer to the
section entitled "Risk Factors" in Abaxis' annual report on Form
10‑K, and subsequently filed quarterly reports on Form 10‑Q filed
with the United States Securities and Exchange Commission.
Forward-looking statements speak only as of the date the statements
were made. Abaxis does not undertake and specifically
disclaims any obligation to update any forward-looking
statements.
Contact:
|
|
|
Abaxis,
Inc.
|
|
Lytham Partners,
LLC
|
Clint Severson, Chief
Executive Officer
|
|
Joe Dorame, Robert
Blum and Joe Diaz
|
510-675-6500
|
|
602-889-9700
|
Financial Tables to Follow
ABAXIS,
INC.
Condensed
Consolidated Statements of Income
(Unaudited)
(In thousands,
except per share data)
|
|
|
|
Three Months
Ended
|
|
June
30,
|
|
2015
|
2014
|
Revenues
|
$ 53,090
|
$
44,054
|
Cost of
revenues
|
23,698
|
20,351
|
Gross
profit
|
29,392
|
23,703
|
Operating
expenses:
|
|
|
Research
and development
|
4,723
|
3,947
|
Sales
and marketing
|
10,586
|
8,832
|
General
and administrative
|
3,458
|
2,908
|
Total operating
expenses
|
18,767
|
15,687
|
Income from
operations
|
10,625
|
8,016
|
Interest and
other income (expense), net
|
359
|
47
|
Income from
continuing operations before income tax provision
|
10,984
|
8,063
|
Income tax
provision
|
3,989
|
2,989
|
Income from
continuing operations
|
6,995
|
5,074
|
Discontinued
operations
|
|
|
Loss from
discontinued operations, net of tax
|
-
|
(359)
|
Net income
|
$ 6,995
|
$
4,715
|
|
|
|
Net income (loss) per
share:
|
|
|
Basic
|
|
|
Continuing operations
|
$ 0.31
|
$
0.23
|
Discontinued operations
|
-
|
(0.02)
|
Basic net
income per share
|
$ 0.31
|
$
0.21
|
Diluted
|
|
|
Continuing operations
|
$ 0.31
|
$
0.23
|
Discontinued operations
|
-
|
(0.02)
|
Diluted net
income per share
|
$ 0.31
|
$
0.21
|
Shares used in the
calculation of net income per share:
|
|
|
Weighted
average common shares outstanding - basic
|
22,624
|
22,408
|
Weighted
average common shares outstanding - diluted
|
22,879
|
22,637
|
Cash dividends
declared per share
|
$ 0.11
|
$
0.10
|
ABAXIS,
INC.
Condensed
Consolidated Balance Sheets
(Unaudited and in
thousands)
|
|
|
|
|
June
30,
|
March
31,
|
|
2015
|
2015
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$ 77,878
|
$ 107,015
|
Short-term
investments
|
51,366
|
26,109
|
Receivables,
net
|
29,245
|
29,015
|
Inventories
|
33,984
|
36,179
|
Prepaid
expenses and other current assets
|
2,563
|
2,893
|
Net deferred
tax assets, current
|
6,577
|
6,575
|
Current assets
of discontinued operations
|
597
|
2,075
|
Total
current assets
|
202,210
|
209,861
|
Long-term
investments
|
23,718
|
24,181
|
Investment in
unconsolidated affiliate
|
2,650
|
2,683
|
Property and
equipment, net
|
26,760
|
27,316
|
Intangible assets,
net
|
1,439
|
1,491
|
Net deferred tax
assets, non-current
|
3,738
|
3,413
|
Non-current assets of
discontinued operations
|
12
|
12
|
Other
assets
|
193
|
107
|
Total
assets
|
$ 260,720
|
$ 269,064
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$ 5,945
|
$ 7,277
|
Accrued payroll
and related expenses
|
7,683
|
11,094
|
Accrued
taxes
|
3,388
|
4,829
|
Current
liabilities of discontinued operations
|
511
|
5,536
|
Other accrued
liabilities
|
8,542
|
9,804
|
Deferred
revenue
|
1,391
|
1,322
|
Warranty
reserve
|
1,322
|
1,423
|
Total
current liabilities
|
28,782
|
41,285
|
Non-current
liabilities:
|
|
|
Deferred
revenue
|
2,999
|
3,219
|
Warranty
reserve
|
1,547
|
1,733
|
Net deferred
tax liabilities
|
310
|
310
|
Notes payable,
less current portion
|
455
|
480
|
Other
non-current liabilities
|
1,889
|
1,843
|
Total
non-current liabilities
|
7,200
|
7,585
|
Total
liabilities
|
35,982
|
48,870
|
Shareholders'
equity:
|
|
|
Common
stock
|
132,603
|
132,559
|
Retained
earnings
|
92,144
|
87,643
|
Accumulated
other comprehensive loss
|
(9)
|
(8)
|
Total
shareholders' equity
|
224,738
|
220,194
|
Total
liabilities and shareholders' equity
|
$ 260,720
|
$ 269,064
|
Revenues by
Geographic Region and Customer Group
(Unaudited)
(In
thousands)
The following table
presents our revenues by source for the three months ended June 30,
2015 and 2014.
|
|
|
|
Three Months
Ended
|
|
June
30,
|
Revenues by
Geographic Region
|
2015
|
2014
|
North
America
|
$ 42,311
|
$ 34,917
|
International
|
10,779
|
9,137
|
Total
revenues
|
$ 53,090
|
$ 44,054
|
|
|
|
|
Three Months
Ended
|
|
June
30,
|
Revenues by
Customer Group
|
2015
|
2014
|
Medical
Market
|
$ 8,684
|
$ 7,245
|
Veterinary
Market
|
43,589
|
35,944
|
Other
|
817
|
865
|
Total
revenues
|
$ 53,090
|
$ 44,054
|
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SOURCE Abaxis, Inc.