UNION CITY, Calif.,
July 24, 2014 /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, 2014.
First quarter overview:
- Revenues of $47.5 million, up 10%
over last year's comparable quarter.
- Diluted EPS of $0.21, up 50% over
last year's comparable quarter.
Revenues highlights:
- Medical market revenues of $7.2
million, up 20% over last year's comparable quarter.
- Veterinary market revenues of $39.4
million, up 8% over last year's comparable quarter.
- North America revenues of
$38.3 million, up 11% over last
year's comparable quarter.
- International revenues of $9.1
million, up 7% over last year's comparable quarter.
- Total medical and veterinary reagent disc revenues of
$26.9 million, up 18% over last
year's comparable quarter.
- Service revenues from Abaxis Veterinary Reference Laboratories
(AVRL) of $3.4 million, up 55% over
last year's comparable quarter.
Other financial highlights:
- Income from operations of $7.4
million, up 60% over last year's comparable quarter.
- Cash, cash equivalents and investments as of June 30, 2014 of $125.7
million, an increase of $4.5
million from March 31,
2014.
- Cash dividend of $0.10 per share
paid during the first quarter of fiscal 2015.
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly dividend of $0.10 per
common share to be paid on September 17,
2014, to all shareholders of record as of the close of
business on September 3,
2014.
Quarterly Results
For the fiscal quarter ended June 30,
2014, Abaxis reported revenues of $47.5 million, as compared with revenues of
$43.2 million for the comparable
period last year, an increase of 10 percent. Revenues from
sales of instruments, which include chemistry analyzers, hematology
instruments, VSpro specialty analyzers and i-STAT analyzers,
decreased by $1.1 million, or 12
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 $3.7
million, or 12 percent, compared to the same period last
year. Abaxis reported net income of $4.7 million for the fiscal quarter ended
June 30, 2014, compared to
$3.2 million for the fiscal quarter
ended June 30, 2013. Abaxis'
effective tax rate in the quarter ended June
30, 2014 was 37 percent, compared to 36 percent for the same
period last year. Abaxis reported diluted net income per
share of $0.21 (calculated based on
22,637,000 shares) for the three-month period ended June 30, 2014, compared to $0.14 per share (calculated based on 22,571,000
shares) for the same period last year.
Other Reported Information
Total sales in the medical market for the first quarter of
fiscal 2015 were $7.2 million, an
increase of 20 percent compared to the same period last year.
Total sales in the veterinary market for the first quarter of
fiscal 2015 were $39.4 million, an
increase of 8 percent, compared to the same period last year.
Total medical and veterinary reagent disc sales for the first
quarter of fiscal 2015 were $26.9
million, an increase of 18 percent compared to the same
period last year. Total unit sales of medical and veterinary
reagent discs for the first quarter of fiscal 2015 were 2.1 million
units, an increase of 18 percent, compared to the same period last
year. Total medical and veterinary instrument sales for the
first quarter of fiscal 2015 were $7.6
million, a decrease of 12 percent, compared to the same
period last year. Total unit sales of medical and veterinary
instruments for the first quarter of fiscal 2015 were 1,077 units,
a decrease of 12 percent, compared to the same period last
year. Non-cash compensation expense recognized for
share-based awards during the first quarter of fiscal 2015 was
$2.0 million, compared to
$2.2 million for the same period last
year. Abaxis paid $2.2 million
in cash dividends to shareholders during the first quarter of
fiscal 2015.
Clint Severson, chairman,
president and chief executive officer of Abaxis, said, "We are
pleased with the strong financial results achieved in both the
veterinary and medical markets during the first quarter of fiscal
2015. As a result of our strategic initiatives to work more
closely with our distribution partners, we were able to produce
strong revenue growth for the first quarter, led by 20% growth in
medical sales and a solid 8% growth in veterinary sales. We
had strong unit sales of chemistry analyzers, with sales of VetScan
VS2s increasing 30% and Piccolo Xpress increasing 20% during the
quarter over last year's comparable quarter. Additionally,
revenues from consumable sales, the core strength of our business,
increased 12% in the first quarter and 14% sequentially; accounting
for 72% of total revenues for the quarter. With an expanded
installed base of chemistry analyzers and increased customer
utilization of diagnostic reagent discs, we sold 2.1 million units
during the first quarter. Our improved operating performance
allowed gross margin to grow 188 basis points to 50% over last
year's comparable quarter. The measurable success during the
first quarter gives us confidence we will achieve improved
operating results and return to growth in fiscal 2015."
"We enter fiscal 2015 focused on executing on organic growth,
improving operating efficiencies, leveraging our distribution
partnerships and capitalizing on opportunities with our recently
announced supply and co-marketing agreement with VCA Inc. We
have the financial wherewithal to effectively grow our business
going forward, with cash, cash equivalents and investments of
$125.7 million at June 30, 2014. Due to our strong cash flow
profile and our positive outlook for the year, the Board of
Directors has again approved a quarterly dividend in the amount of
$0.10 per share of common stock,
which we expect will be paid in September
2014. We look forward to building momentum as we
advance through fiscal 2015 and beyond," Mr. Severson
concluded.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, July 24, 2014.
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 10049800, through July
30, 2014. 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, markets and sells 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, 5.1 kilogram
(11.2 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 12 minutes with the precision and accuracy
equivalent to a clinical laboratory analyzer. The veterinary
business also provides to the animal health and research market a
line of hematology instruments for point-of-care complete blood
counts (CBC), a specialty instrument to screen for and detect
clotting disorders and to measure equine fibrinogen levels, a
handheld instrument for the rapid assessment of certain critical
care tests and rapid point-of-care tests for Heartworm infections,
Parvovirus, Giardia and Lyme disease. Abaxis, through its
AVRL division, provides routine laboratory testing as well as
specialty testing for veterinarians nationwide. For more
information, visit http://www.abaxis.com.
Use of Financial Measures
To supplement the financial statements presented in accordance
with United States generally
accepted accounting principles (GAAP), Abaxis uses operating income
per share, a non-GAAP financial measure. The presentation of
this financial information is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
For more information on this non-GAAP financial measure,
refer to the table captioned "Operating Income Per Share" included
at the end of this release. Abaxis defines operating income
per share as operating income divided by the weighted average
outstanding shares. Management uses this measure in comparing
Abaxis' operating results with 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.
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, 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, recent
quarterly reports on Form 10-Q and Abaxis' other periodic reports
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.
Financial Tables to
Follow
ABAXIS,
INC.
|
Condensed
Consolidated Statements of Income
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
June
30,
|
|
2014
|
2013
|
Revenues
|
$ 47,477
|
$ 43,169
|
Cost of
revenues
|
23,605
|
22,277
|
Gross
profit
|
23,872
|
20,892
|
Operating
expenses:
|
|
|
Research
and development
|
3,947
|
3,173
|
Sales
and marketing
|
9,578
|
10,028
|
General
and administrative
|
2,908
|
3,055
|
Total operating
expenses
|
16,433
|
16,256
|
Income from
operations
|
7,439
|
4,636
|
Interest and other
income (expense), net
|
47
|
404
|
Income before income
tax provision
|
7,486
|
5,040
|
Income tax
provision
|
2,771
|
1,811
|
Net income
|
$ 4,715
|
$ 3,229
|
|
|
|
Net income per
share:
|
|
|
Basic net
income per share
|
$
0.21
|
$ 0.15
|
Diluted net
income per share
|
$
0.21
|
$ 0.14
|
Shares used in the
calculation of net income per share:
|
|
|
Weighted
average common shares outstanding - basic
|
22,408
|
22,229
|
Weighted
average common shares outstanding - diluted
|
22,637
|
22,571
|
Cash dividends
declared per share
|
$
0.10
|
$
-
|
ABAXIS,
INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited and in
thousands)
|
|
|
June
30,
|
March
31,
|
|
2014
|
2014
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$ 87,103
|
$ 73,589
|
Short-term
investments
|
20,139
|
29,102
|
Receivables,
net
|
33,252
|
29,227
|
Inventories
|
27,553
|
26,978
|
Prepaid
expenses and other current assets
|
1,719
|
2,452
|
Net deferred
tax assets, current
|
5,190
|
4,464
|
Total
current assets
|
174,956
|
165,812
|
Long-term
investments
|
18,411
|
18,491
|
Investment in
unconsolidated affiliate
|
2,597
|
2,646
|
Property and
equipment, net
|
27,720
|
27,176
|
Intangible assets,
net
|
1,249
|
1,624
|
Net deferred tax
assets, non-current
|
1,549
|
1,557
|
Other
assets
|
129
|
74
|
Total
assets
|
$ 226,611
|
$ 217,380
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$ 7,050
|
$ 6,111
|
Accrued payroll
and related expenses
|
6,877
|
4,654
|
Accrued
taxes
|
3,525
|
1,144
|
Other accrued
liabilities
|
3,849
|
3,095
|
Deferred
revenue
|
1,188
|
1,208
|
Warranty
reserve
|
961
|
1,047
|
Total
current liabilities
|
23,450
|
17,259
|
Non-current
liabilities:
|
|
|
Deferred
rent
|
768
|
768
|
Deferred
revenue
|
3,833
|
4,035
|
Warranty
reserve
|
912
|
821
|
Notes payable,
less current portion
|
556
|
581
|
Total
non-current liabilities
|
6,069
|
6,205
|
Total
liabilities
|
29,519
|
23,464
|
Shareholders'
equity:
|
|
|
Common
stock
|
125,306
|
124,603
|
Retained
earnings
|
71,787
|
69,318
|
Accumulated
other comprehensive loss
|
(1)
|
(5)
|
Total
shareholders' equity
|
197,092
|
193,916
|
Total
liabilities and shareholders' equity
|
$ 226,611
|
$ 217,380
|
The following table presents our calculation of operating income
per share for the three months ended June
30, 2014 and 2013.
Operating Income
Per Share
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
June
30,
|
|
2014
|
2013
|
Income from
operations
|
$ 7,439
|
$ 4,636
|
|
|
|
Shares used in the
calculation of operating income per share:
|
|
|
Weighted
average common shares outstanding - basic
|
22,408
|
22,229
|
Weighted
average common shares outstanding - diluted
|
22,637
|
22,571
|
|
|
|
Operating income per
share - basic
|
$ 0.33
|
$ 0.21
|
Operating income per
share - diluted
|
$ 0.33
|
$ 0.21
|
The following table presents our revenues by source for the
three months ended June 30, 2014 and
2013.
Revenues by
Geographic Region and Customer Group
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
June
30,
|
Revenues by
Geographic Region
|
2014
|
2013
|
North
America
|
$ 38,340
|
$ 34,652
|
International
|
9,137
|
8,517
|
Total
revenues
|
$ 47,477
|
$ 43,169
|
|
|
|
|
Three Months
Ended
|
|
June
30,
|
Revenues by
Customer Group
|
2014
|
2013
|
Medical
Market
|
$ 7,245
|
$ 6,038
|
Veterinary
Market
|
39,367
|
36,371
|
Other
|
865
|
760
|
Total
revenues
|
$ 47,477
|
$ 43,169
|
SOURCE Abaxis, Inc.