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 Joe Dorame, Robert Blum Executive Officer 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.