UNION CITY, Calif.,
July 21, 2016 /PRNewswire/ -- Abaxis,
Inc. (NasdaqGS: ABAX), a global diagnostics company manufacturing
point-of-care blood analysis instruments and consumables for the
medical and veterinary markets worldwide, today reported financial
results for the first fiscal quarter ended June 30, 2016.
First quarter overview:
- Record revenues of $57.7 million,
up 9% over last year's comparable quarter.
- Diluted net income per share of $0.30, down 3% from last year's comparable
quarter, resulting from an increase of 2 percentage points in
operating expenses as a percentage of revenues, due to initiatives
to increase investments in research and development and
international sales and marketing.
Revenues highlights:
- Medical market revenues of $9.1
million, up 5% over last year's comparable quarter.
- Veterinary market revenues of $47.7
million, up 10% over last year's comparable quarter.
- Revenues from sales of consumables, which include reagent
discs, hematology reagent kits, VSpro specialty cartridges,
i-STAT cartridges and rapid tests, of $44.7
million, up 7% over last year's comparable quarter.
- Total medical and veterinary reagent disc revenues of
$31.3 million, up 3% over last year's
comparable quarter.
- Total medical and veterinary reagent disc sales of 2.5 million
units, up 5% over last year's comparable quarter.
- Total medical and veterinary instrument revenues of
$10.1 million, up 16% over last
year's comparable quarter.
- Total medical and veterinary instrument sales of 1,533 units,
up 16% over last year's comparable quarter.
- North America revenues of
$46.8 million, up 11% over last
year's comparable quarter.
- International revenues of $10.9
million, flat compared to $10.8
million for last year's comparable quarter.
Other financial highlights:
- Gross profit of $32.0 million, up
9% over last year's comparable quarter.
- Cash, cash equivalents and investments as of June 30, 2016 of $153.3
million.
- Abaxis paid dividends of $2.7
million, or $0.12 per share
during the first quarter of fiscal 2017.
Management Discussion
Clint Severson, chairman and
chief executive officer of Abaxis, commented, "We are off to a
solid start in the first quarter of fiscal 2017 with record total
revenues and 10% growth in veterinary sales. Total revenues
for the quarter increased by 9% over last year's first quarter,
driven by 16% growth in instrument sales year over year, which sets
the stage for future consumable revenue growth in the coming
quarters and years. Revenues from our consumables portfolio
grew 7% year over year and continued to drive consistent financial
results, and revenues from consumables amounted to 77% of total
revenues in the first quarter of fiscal 2017. We are
particularly pleased to have gained additional traction in the
medical market, with medical reagent disc sales generating a
quarterly unit sales record with an increase of 15% during the
first quarter of fiscal year 2017 over last year's first
quarter. We significantly increased our investment in
research and development and international sales and marketing
expenses during the quarter, as planned, which resulted in flat
operating income in the quarter. However, these investments
are intended to drive long-term revenues and income growth for the
company."
Mr. Severson concluded, "The financial condition of the company
continued to be strong with cash, cash equivalents and short- and
long-term investments of $153.3
million. We continued to manage the company
conservatively and fund operations, as well as our quarterly
dividend, from internally generated cash flow. We are excited
with the opportunities ahead of us in the remaining three quarters
of fiscal 2017 and beyond."
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly cash dividend of $0.12 per
common share, to be paid on September 15,
2016, to all shareholders of record as of the close of
business on September 1, 2016.
Share Repurchase Program
Abaxis' Board of Directors has approved a $30 million increase to its existing share
repurchase program, to a total of $54
million. As of June 30,
2016, Abaxis had $24.0 million
of its common stock available for repurchase under its share
repurchase program.
Results of Operations
Quarterly Results
For the fiscal quarter ended June 30,
2016, Abaxis reported revenues of $57.7 million, as compared with revenues of
$53.1 million for the comparable
period last year, an increase of 9%. Revenues from sales of
instruments, which include chemistry analyzers, hematology
instruments, VSpro specialty analyzers and i‑STAT analyzers,
increased by $1.4 million, or 16%,
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 $2.9 million, or
7%, over the same period last year. Abaxis reported net
income of $6.9 million for the fiscal
quarter ended June 30, 2016, compared
to $7.0 million for the fiscal
quarter ended June 30, 2015.
Abaxis' effective tax rate in the fiscal quarter ended June 30, 2016 was 36%, compared to 36% for the
same period last year. Abaxis reported diluted net income per
share of $0.30 (calculated based on
22,685,000 shares) for the three-month period ended June 30, 2016, compared to $0.31 per share (calculated based on 22,879,000
shares) for the same period last year.
Other Reported Information
Non-cash compensation expense recognized for share-based awards
during each of the first quarter of fiscal 2017 and the first
quarter of fiscal 2016 was $2.8
million. Abaxis paid $2.7
million in cash dividends to shareholders during the first
quarter of fiscal 2017.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, July 21, 2016.
Participants can dial (844) 855-9498 or (412) 317-5496 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 10089674, through July
28, 2016. 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 and tools 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 the opportunities ahead of Abaxis in the remaining three
quarters of fiscal year 2017 and beyond, Abaxis' ability to obtain
future consumable revenue growth in the coming quarters and years
driven by its growth in instrument sales, the ability of Abaxis to
derive long-term revenue and income growth from its investments in
research and development and international sales and marketing,
Abaxis' beliefs regarding its ability to perform at a high level,
generate significant cash flow, maintain the strong financial
foundation of Abaxis and enable Abaxis to take advantage of
opportunities, the continued success of Abaxis, payment of future
cash dividends, financial resources and potential for future
growth, market acceptance and penetration of product offerings, and
future revenues, income 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 Abaxis' manufacturing
operations, including the vulnerability of its manufacturing
operations to potential interruptions and delays and its ability to
manufacture products free of defects, Abaxis' ability to compete
effectively, market acceptance of Abaxis' products, fluctuations in
quarterly operating results and difficulty in predicting future
results, the performance of Abaxis' independent distributors and
Abaxis' ability to manage their inventory levels effectively,
expansion of Abaxis' sales and marketing and distribution efforts,
Abaxis' dependence on Abbott Point of Care, Inc. for its U.S.
medical sales, dependence on sole or limited source suppliers, the
effect of exchange rate fluctuations on international operations,
dependence on key personnel, risks related to the protection of
Abaxis' intellectual property or claims of infringement of
intellectual property asserted by third parties. 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.
Financial Tables to Follow
ABAXIS,
INC.
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2016
|
2015
|
Revenues
|
|
$
57,696
|
$
53,090
|
Cost of
revenues
|
|
25,695
|
23,698
|
Gross
profit
|
|
32,001
|
29,392
|
Operating
expenses:
|
|
|
|
Research
and development
|
|
5,233
|
4,723
|
Sales
and marketing
|
|
11,824
|
10,586
|
General
and administrative
|
|
4,202
|
3,458
|
Total operating
expenses
|
|
21,259
|
18,767
|
Income from
operations
|
|
10,742
|
10,625
|
Interest and
other income (expense), net
|
|
(30)
|
359
|
Income before income
tax provision
|
|
10,712
|
10,984
|
Income tax
provision
|
|
3,822
|
3,989
|
Net income
|
|
$
6,890
|
$
6,995
|
|
|
|
|
Net income per
share:
|
|
|
|
Basic net
income per share
|
|
$
0.31
|
$
0.31
|
Diluted net
income per share
|
|
$
0.30
|
$
0.31
|
Shares used in the
calculation of net income per share:
|
|
|
|
Weighted
average common shares outstanding - basic
|
|
22,465
|
22,624
|
Weighted
average common shares outstanding - diluted
|
|
22,685
|
22,879
|
Cash dividends
declared per share
|
|
$
0.12
|
$
0.11
|
ABAXIS,
INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited and in
thousands)
|
|
June
30,
|
March
31,
|
|
2016
|
2016
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
87,526
|
$
88,323
|
Short-term
investments
|
48,657
|
41,474
|
Receivables,
net
|
36,908
|
35,148
|
Inventories
|
35,640
|
35,131
|
Prepaid
expenses and other current assets
|
4,040
|
6,351
|
Net deferred
tax assets, current
|
4,810
|
4,810
|
Current assets
of discontinued operations
|
61
|
961
|
Total
current assets
|
217,642
|
212,198
|
Long-term
investments
|
17,080
|
22,458
|
Investment in
unconsolidated affiliates
|
5,670
|
2,705
|
Property and
equipment, net
|
29,277
|
26,842
|
Intangible assets,
net
|
1,286
|
1,324
|
Net deferred tax
assets, non-current
|
4,293
|
3,903
|
Other
assets
|
3,397
|
1,950
|
Total
assets
|
$ 278,645
|
$
271,380
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
8,390
|
$
7,292
|
Accrued payroll
and related expenses
|
7,930
|
8,349
|
Accrued
taxes
|
1,958
|
1,145
|
Current
liabilities of discontinued operations
|
57
|
112
|
Other accrued
liabilities
|
9,293
|
9,393
|
Deferred
revenue
|
1,624
|
1,600
|
Warranty
reserve
|
1,344
|
1,281
|
Total
current liabilities
|
30,596
|
29,172
|
Non-current
liabilities:
|
|
|
Deferred
revenue
|
2,034
|
2,274
|
Warranty
reserve
|
2,232
|
1,927
|
Net deferred
tax liabilities
|
277
|
384
|
Notes payable,
less current portion
|
354
|
379
|
Other
non-current liabilities
|
990
|
932
|
Total
non-current liabilities
|
5,887
|
5,896
|
Total
liabilities
|
36,483
|
35,068
|
Shareholders'
equity:
|
|
|
Common
stock
|
128,667
|
127,016
|
Retained
earnings
|
113,493
|
109,303
|
Accumulated
other comprehensive income (loss)
|
2
|
(7)
|
Total
shareholders' equity
|
242,162
|
236,312
|
Total
liabilities and shareholders' equity
|
$ 278,645
|
$
271,380
|
Revenues by
Geographic Region and Customer Group
|
(Unaudited and in
thousands)
|
|
The following table
presents our revenues by source for the three months ended June 30,
2016 and 2015.
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
Revenues by
Geographic Region
|
|
2016
|
2015
|
North
America
|
|
$
46,773
|
$
42,311
|
International
|
|
10,923
|
10,779
|
Total
revenues
|
|
$
57,696
|
$
53,090
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
Revenues by
Customer Group
|
|
2016
|
2015
|
Medical
Market
|
|
$
9,097
|
$
8,684
|
Veterinary
Market
|
|
47,731
|
43,589
|
Other
|
|
868
|
817
|
Total
revenues
|
|
$
57,696
|
$
53,090
|
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SOURCE Abaxis, Inc.