UNION CITY, Calif.,
Jan. 9, 2018 /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 preliminary financial results for the third fiscal quarter
ended December 31, 2017.
Abaxis expects revenues in the third fiscal quarter of fiscal
2018 in a range of $59.0 million to
$60.0 million, an increase of 12% to
14%, over last year's comparable quarter. In addition, Abaxis
expects operating income before income tax provision in the third
fiscal quarter of fiscal 2018 of $9.0
million to $10.0 million
compared to $10.8 million in last
year's third quarter. Abaxis expects its gross margin for the
third fiscal quarter of fiscal 2018 to be between 53.5% and
54.0%.
Following the recently enacted Tax Cuts and Jobs Act ("TCJA") on
December 22, 2017, Abaxis expects its
effective income tax rate to decline by 200 to 300 basis points in
fiscal 2018 compared to fiscal 2017, excluding a one-time non-cash
charge described below. In the third quarter of fiscal 2018,
Abaxis expects its effective income tax rate to be approximately
27%, excluding a one-time non-cash charge described below.
Abaxis estimates its effective income tax rate in fiscal 2019 will
be lower by 1,000 to 1,200 basis points compared to fiscal
2017.
During the third quarter of fiscal 2018, Abaxis expects to
record a one-time non-cash charge of approximately $2.5 million to $3.5
million to its income statement as a result of TCJA.
The charge is due to a reduction in deferred tax assets as a result
of the reduction of the federal tax rate from 35% to 21% effective
January 1, 2018. The actual
impact of the TCJA on the Company's effective income tax rates may
differ from the estimates above, due to changes in interpretations
and assumptions made by the Company. The Company anticipates
subsequent regulations associated with the TCJA will be forthcoming
and will continue to analyze the tax legislation to determine the
full effects of the new law on Abaxis' financial statements.
These estimated results for the third quarter of fiscal 2018 are
preliminary and subject to change upon completion of Abaxis'
quarter-end financial review process. Abaxis plans to
announce its detailed earnings results on January 25, 2018.
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 Current Report 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 Abaxis' expected
financial results for the third quarter of fiscal 2018 and expected
tax rates for fiscal 2018 and fiscal 2019. 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 Current Report 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' most recent 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.
View original
content:http://www.prnewswire.com/news-releases/abaxis-reports-preliminary-financial-performance-for-the-third-quarter-of-fiscal-2018-300579721.html
SOURCE Abaxis, Inc.