UNION CITY, Calif.,
July 27, 2017 /PRNewswire/ -- Abaxis,
Inc. (Nasdaq: 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 quarter ended June 30,
2017.
First quarter results include:
- Revenues of $58.3 million, up 1%
from last year's comparable quarter.
- Veterinary market revenues of $48.4
million, up 1% over last year's comparable quarter.
- International revenues of $11.3
million, up 3% 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 $46.0
million, up 3% over last year's comparable quarter.
- Gross profit of $31.9 million,
compared to $32.0 million, in last
year's comparable quarter.
- Cash, cash equivalents and investments as of June 30, 2017 of $170.5
million.
- Abaxis paid dividends of $3.2
million, or $0.14 per share,
during the first quarter of fiscal 2018.
Management Discussion
Clint Severson, chairman and
chief executive officer of Abaxis, said, "Revenues were
$58.3 million, an increase of 1%,
over last year's first quarter. Our worldwide veterinary
reagent discs unit sales increased by 1%, over last year's first
quarter, driven by an increase in North
America of 3%. This growth in unit sales of veterinary
reagent discs in North America is
an acceleration from recent quarters and an indicator that our
sales and marketing strategies within North America are yielding benefits. Our
VetScan rapid tests revenues increased by 12% in the first quarter
of fiscal 2018, compared to last year's first quarter. The
rapid tests sales were driven by strength in multiple products,
including our new test for canine specific lipase, which we
launched in early June 2017."
"Our Piccolo instrument revenues increased by 18% in the first
quarter of fiscal 2018, compared to last year's first
quarter. Although unit sales of our medical reagent discs
decreased worldwide by 6%, from last year's first quarter, due to
the reduction of inventory during the quarter by one of our large
customers, we believe the underlying demand for medical reagent
discs at the end-customer level remains strong, and the long-term
growth opportunity for the medical market is still excellent.
Total consumables sales for the first fiscal quarter were solid,
increasing by 3%, over last year's first quarter, to $46.0 million. Overall consumables and
other recurring revenues represented 85% of our total sales for the
first fiscal quarter. We continue to gain traction with our
sales and marketing strategies and are optimistic that our
investments will help our top-line growth going forward."
"Following the recent launches of our VetScan Phenobarbital
Profile and our VetScan Canine Pancreatic Lipase Rapid Test, we
expect to introduce additional new products during fiscal 2018,
including two urinalysis diagnostic products and the broader
commercial launch of our VetScan FUSE. We believe these new
products, along with our sales and marketing strategies, will make
significant contributions to future operational results."
Mr. Severson concluded, "We remain committed to rewarding our
shareholders with a quarterly cash dividend, while maintaining a
strong balance sheet with $170.5
million in cash, cash equivalents and short- and long-term
investments as of June 30, 2017."
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly cash dividend of $0.14 per
share of common stock, to be paid on September 15, 2017, to all shareholders of record
as of the close of business on September
1, 2017.
Results of Operations
Quarterly Results
For the fiscal quarter ended June 30,
2017, Abaxis reported revenues of $58.3 million, as compared with revenues of
$57.7 million for the comparable
period last year. Revenues from sales of instruments, which
include chemistry analyzers, hematology instruments, VSpro
specialty analyzers and i‑STAT analyzers, decreased by $1.3 million, or 13%, 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
$1.4 million, or 3%, over the same
period last year. Abaxis reported income from operations of
$8.5 million and net income of
$6.3 million for the fiscal quarter
ended June 30, 2017, compared to
$10.7 million and $6.9 million for the fiscal quarter ended
June 30, 2016, respectively.
Abaxis' effective tax rate in the fiscal quarter ended June 30, 2017 was 35%, compared to 36% for the
same period last year. Abaxis reported diluted net income per
share of $0.28 (calculated based on
22,968,000 shares) for the fiscal quarter ended June 30, 2017, compared to $0.30 per share (calculated based on 22,685,000
shares) for the same period last year.
Other Reported Information
Non-cash compensation expense recognized for share-based awards
during the three months ended June 30,
2017 and 2016 was $3.1 million
and $2.8 million, respectively.
Abaxis paid $3.2 million in cash
dividends to shareholders during the first quarter of fiscal
2018.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, July 27, 2017.
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 10110686, through August
3, 2017. 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 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 long-term
growth opportunities in the medical market, the effects of Abaxis'
investments in sales and marketing, Abaxis' expansion of its
product portfolio and its effect on Abaxis' revenue growth, the
expected launch timing for new products, the ability of new
products to benefit Abaxis' long-term growth and payment of future
cash dividends. 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. Forward-looking statements contained in
this press release may be affected by risks and uncertainties that
may cause actual results to differ materially from those projected
or implied in such forward-looking statements, including, but not
limited to, risks and uncertainties 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,
|
|
|
2017
|
2016
|
Revenues
|
|
$
58,258
|
$
57,696
|
Cost of
revenues
|
|
26,314
|
25,695
|
Gross
profit
|
|
31,944
|
32,001
|
Operating
expenses:
|
|
|
|
Research
and development
|
|
6,432
|
5,233
|
Sales
and marketing
|
|
12,501
|
11,824
|
General
and administrative
|
|
4,550
|
4,202
|
Total operating
expenses
|
|
23,483
|
21,259
|
Income from
operations
|
|
8,461
|
10,742
|
Interest and other
income (expense), net
|
|
1,311
|
(30)
|
Income before income
tax provision
|
|
9,772
|
10,712
|
Income tax
provision
|
|
3,442
|
3,822
|
Net income
|
|
$
6,330
|
$
6,890
|
|
|
|
|
Net income per
share:
|
|
|
|
Basic net
income per share
|
|
$
0.28
|
$
0.31
|
Diluted net
income per share
|
|
$
0.28
|
$
0.30
|
Shares used in the
calculation of net income per share:
|
|
|
|
Weighted
average common shares outstanding - basic
|
|
22,616
|
22,465
|
Weighted
average common shares outstanding - diluted
|
|
22,968
|
22,685
|
Cash dividends
declared per share
|
|
$
0.14
|
$
0.12
|
ABAXIS,
INC.
Condensed
Consolidated Balance Sheets
(Unaudited and in
thousands)
|
|
|
|
June
30,
|
March
31,
|
|
|
2017
|
2017
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
|
91,473
|
$
91,332
|
Short-term
investments
|
|
46,190
|
51,561
|
Receivables,
net
|
|
44,022
|
40,568
|
Inventories
|
|
40,569
|
39,010
|
Prepaid
expenses and other current assets
|
|
4,500
|
4,997
|
Net deferred
tax assets, current
|
|
-
|
5,644
|
Current assets
of discontinued operations
|
|
34
|
66
|
Total
current assets
|
|
226,788
|
233,178
|
Long-term
investments
|
|
32,873
|
22,171
|
Investment in
unconsolidated affiliates
|
|
2,816
|
2,850
|
Property and
equipment, net
|
|
34,281
|
34,260
|
Intangible assets,
net
|
|
1,132
|
1,171
|
Net deferred tax
assets, non-current
|
|
10,749
|
4,392
|
Other
assets
|
|
8,599
|
7,624
|
Total
assets
|
|
$ 317,238
|
$ 305,646
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
|
$
10,266
|
$
7,517
|
Accrued payroll
and related expenses
|
|
8,652
|
9,606
|
Accrued
taxes
|
|
5,719
|
2,151
|
Current
liabilities of discontinued operations
|
|
58
|
85
|
Other accrued
liabilities
|
|
12,329
|
11,006
|
Deferred
revenue
|
|
1,242
|
1,415
|
Warranty
reserve
|
|
1,770
|
1,663
|
Total
current liabilities
|
|
40,036
|
33,443
|
Non-current
liabilities:
|
|
|
|
Deferred
revenue
|
|
1,362
|
1,460
|
Warranty
reserve
|
|
2,771
|
2,695
|
Net deferred
tax liabilities
|
|
226
|
234
|
Notes payable,
less current portion
|
|
253
|
278
|
Other
non-current liabilities
|
|
1,451
|
1,312
|
Total
non-current liabilities
|
|
6,063
|
5,979
|
Total
liabilities
|
|
46,099
|
39,422
|
Shareholders'
equity:
|
|
|
|
Common
stock
|
|
137,699
|
135,932
|
Retained
earnings
|
|
133,462
|
130,304
|
Accumulated
other comprehensive loss
|
|
(22)
|
(12)
|
Total
shareholders' equity
|
|
271,139
|
266,224
|
Total
liabilities and shareholders' equity
|
|
$ 317,238
|
$ 305,646
|
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,
2017 and 2016.
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
2017
|
2016
|
Revenues by
Geographic Region
|
|
|
|
North
America
|
|
$
46,969
|
$
46,773
|
International
|
|
11,289
|
10,923
|
Total
revenues
|
|
$
58,258
|
$
57,696
|
|
|
|
|
Revenues by
Customer Group
|
|
|
|
Medical
Market
|
|
$
8,862
|
$
9,097
|
Veterinary
Market
|
|
48,368
|
47,731
|
Other
|
|
1,028
|
868
|
Total
revenues
|
|
$
58,258
|
$
57,696
|
View original
content:http://www.prnewswire.com/news-releases/abaxis-reports-financial-performance-for-the-first-quarter-of-fiscal-2018-and-declares-quarterly-cash-dividend-300495479.html
SOURCE Abaxis, Inc.