Abaxis Inc : Abaxis Reports Financial Performance For The Fourth Quarter And Fiscal 2012
04/26/2012| 07:01pm US/Eastern
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UNION CITY, Calif., April 26, 2012 /PRNewswire/ -- Abaxis,
Inc. (NasdaqGS: ABAX), a medical products company
manufacturing point-of-care blood analysis systems, today
reported financial results for the fourth quarter and fiscal
year ended March 31, 2012.
Record fourth quarter and fiscal 2012 results include:
Revenues of $42.7 million, up 14% over last year's
comparable quarter, and $156.6 million for fiscal 2012, up
9% year-over-year.
North America revenues of $35.4 million, up 16% over last
year's comparable quarter, and $129.0 million for
fiscal 2012, up 9% year-over-year.
Veterinary market sales of $34.1 million, up 19% over last
year's comparable quarter, and $121.8 million for
fiscal 2012, up 12% year-over-year.
Total medical and veterinary instrument sales of $9.8
million, up 25% over last year's comparable quarter,
and $35.2 million for fiscal 2012, up 10% year-over-year.
Total medical and veterinary instrument sales of 1,312
units, up 22% over last year's comparable quarter, and
4,751 units for fiscal 2012, up 9% year-over-year.
Operating income of $6.4 million for the quarter, up 22%
over last year's comparable quarter.
Net income of $4.7 million for the quarter, up 40% over
last year's comparable quarter.
Other fourth quarter and fiscal 2012 key results include:
International revenues of $7.3 million, up 5% over last
year's comparable quarter, and $27.6 million for fiscal
2012, up 8% year-over-year.
Total medical and veterinary reagent disc sales of $23.8
million, up 6% over last year's comparable quarter, and
$87.7 million for fiscal 2012, up 8% year-over-year.
Total medical and veterinary reagent disc sales of 1.8
million units, same as last year's comparable quarter,
and 6.8 million units for fiscal 2012, up 5%
year-over-year.
Operating income of $19.5 million for fiscal 2012, down 13%
year-over-year.
Net income of $13.1 million for fiscal 2012, down 10%
year-over-year.
Quarterly Results: For the fiscal quarter ended March 31,
2012, Abaxis reported revenues of $42.7 million, as compared
with revenues of $37.5 million for the comparable period last
year, an increase of 14 percent. Revenues from sales of
instruments, which include chemistry analyzers, hematology
instruments, VSpro coagulation and specialty
analyzers and i-STAT analyzers, increased by an aggregate of
$2.0 million or 25 percent, over the same period last year.
Revenues from sales of consumables, which include reagent
discs, hematology reagent kits, VSpro coagulation
and specialty cartridges, i-STAT cartridges and rapid tests,
increased by an aggregate of $3.0 million, or 11 percent,
over the same period last year. Abaxis reported net income of
$4.7 million for the fiscal quarter ended March 31, 2012,
compared to $3.4 million for the same period last year, an
increase of 40 percent. Abaxis' effective tax rate in the
quarter ended March 31, 2012 was 32 percent, compared to 41
percent for the same period last year. Abaxis reported
diluted net income per share of $0.21 (calculated based on
22,070,000 shares) for the three-month period ended March 31,
2012, compared to $0.15 per share (calculated based on
23,013,000 shares) for the same period last year.
Fiscal 2012 Results: For the fiscal year ended March 31,
2012, Abaxis reported revenues of $156.6 million, as compared
with revenues of $143.7 million for the prior year, an
increase of 9 percent. Revenues from instrument sales
increased by an aggregate of $3.1 million, or 10 percent,
over the prior year. Revenues from consumables sales
increased by an aggregate of $10.9 million, or 11 percent,
over the prior year. Total medical and veterinary instrument
sales were 4,751 units, up 9 percent over the prior year.
Abaxis reported net income of $13.1 million, compared to
$14.5 million for the prior year. Abaxis' effective tax
rate in the fiscal year ended March 31, 2012, was 35 percent,
compared to 38 percent for the prior year. Abaxis reported
diluted net income per share of $0.58 (calculated based on
22,462,000 shares) for fiscal 2012, compared to $0.64 per
share (calculated based on 22,858,000 shares) for fiscal
2011.
Other Reported Information: Total sales in the medical market
for the fourth quarter of fiscal 2012 were $7.6 million,
which were flat, compared to the same period last year.
Medical sales worldwide, excluding sales to the U.S.
government, during the fourth quarter of fiscal 2012 were
$7.2 million, an increase of 3 percent, compared to the same
period last year. Total sales in the veterinary market for
the fourth quarter of fiscal 2012 were $34.1 million, an
increase of 19 percent, compared to the same period last
year. Veterinary reagent disc sales for the fourth quarter of
fiscal 2012 were $18.9 million, an increase of 11 percent
compared to the same period last year. Non-cash compensation
expense recognized for share-based awards during the fourth
quarter of fiscal 2012 was $1.5 million, compared to $1.3
million for the same period last year.
Clint Severson, chairman and chief executive officer of
Abaxis, commented, "We are very pleased with the
operational and financial results of the fourth quarter of
fiscal year 2012. We achieved at a very high level and set
records across the board on a number of critical metrics
including revenues and instrument and reagent disc sales. For
the fourth quarter we achieved double-digit total revenue
increases, driven in large part by strong increases in North
American revenues. Unit sales of medical and veterinary
instruments increased 22%, which in turn drove a 25% increase
in medical and veterinary instrument revenues for the
quarter. These are all record levels for the company."
"On the expense side of the ledger, we continue to make
investments in expanding our direct sales and marketing
capabilities as well as maintaining our commitment to
research and development in improving our existing product
lines and developing new products for the future. We remain
committed to the successful operation of our Abaxis
Veterinary Reference Laboratories (AVRL), as they become more
fully established and able to support operations from their
internal cash flow. Additionally, we have established a new
distribution center in Europe, allowing us to better serve
our customers. These investments had an impact on the amount
we were able to bring to the bottom line for the full 2012
fiscal year, and position us for continued strong growth in
the years ahead."
Mr. Severson concluded, "The results of the year are a
testament to the focus and dedication of the entire Abaxis
team. Although global economic conditions continue to pose
challenges on a day-to-day basis, our team continues to
execute at the highest levels and produce record results. As
a result of this focus on execution, consumables sales, the
recurring component of our revenue stream, now stands at 73%
of total revenues which is an all-time high for Abaxis. This
is a strong validation of our business model and bodes well
for the future. Clearly, we closed fiscal year 2012 on a
strong note, but more importantly, we have set the stage for
continued growth in the coming years. A key contributor to
this growth and an integral part of the executive management
team at Abaxis, has been Martin Mulroy, Vice President of
Animal Health Sales and Marketing, since May 2006. I am
pleased to announce the Board of Directors have approved the
promotion of Martin to Chief Commercial Officer effective
April 25, 2012. I would like to congratulate Martin on his
new position and we expect even greater contributions going
forward."
Conference Call
Abaxis has scheduled a conference call to discuss its results
at 4:15 p.m. Eastern Time on Thursday, April 26, 2012.
Participants can dial (877) 317-6789 or (412) 317-6759 to
access the conference call, or can listen via a live Internet
web cast, 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 10012997, through May 4, 2012. 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.
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.
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 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, risks related to condition of the United States
economy and other risks detailed under "Risk
Factors" in Abaxis' Quarterly Report on Form 10-Q
for the fiscal quarter ended December 31, 2011 and
Abaxis' other periodic reports filed from time to time
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 on Following Pages
ABAXIS, INC.
Condensed Consolidated Statements of
Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Twelve Months Ended
March 31,
March 31,
2012
2011
2012
2011
Revenues
$ 42,718
$ 37,540
$ 156,596
$ 143,676
Cost of revenues
19,337
17,091
71,493
63,884
Gross profit
23,381
20,449
85,103
79,792
Operating expenses:
Research and development
3,150
2,652
12,246
11,973
Sales and marketing
11,204
9,135
39,618
34,384
General and administrative
2,588
3,367
13,782
10,963
Total operating expenses
16,942
15,154
65,646
57,320
Income from operations
6,439
5,295
19,457
22,472
Interest and other income (expense), net
451
401
710
1,099
Income before income tax provision
6,890
5,696
20,167
23,571
Income tax provision
2,184
2,323
7,076
9,034
Net income
$ 4,706
$ 3,373
$ 13,091
$ 14,537
Net income per share:
Basic net income per share
$ 0.22
$ 0.15
$ 0.59
$ 0.65
Diluted net income per share
$ 0.21
$ 0.15
$ 0.58
$ 0.64
Shares used in the calculation of net income
per share:
Weighted average common shares outstanding -
basic
21,693
22,537
22,084
22,365
Weighted average common shares outstanding -
diluted
22,070
23,013
22,462
22,858
ABAXIS, INC.
Condensed Consolidated Balance Sheets
(Unaudited and in thousands)
March 31,
March 31,
2012
2011
Current assets:
Cash and cash equivalents
$
45,843
$
43,471
Short-term investments
21,689
25,981
Receivables, net
30,694
27,880
Inventories
19,597
19,814
Prepaid expenses and other current
assets
5,423
3,496
Net deferred tax assets, current
4,151
3,422
Total current assets
127,397
124,064
Long-term investments
23,442
36,237
Investment in unconsolidated affiliate
2,626
2,769
Property and equipment, net
24,296
19,637
Intangible assets, net
3,990
4,216
Net deferred tax assets, non-current
-
1,203
Other assets
85
134
Total assets
$
181,836
$
188,260
Current liabilities:
Accounts payable
$
6,381
$
6,173
Accrued payroll and related expenses
6,336
6,129
Accrued taxes
266
559
Other accrued liabilities
1,991
1,677
Deferred revenue
1,212
953
Warranty reserve
1,245
1,031
Total current liabilities
17,431
16,522
Non-current liabilities:
Deferred rent
641
416
Net deferred tax liabilities,
non-current
199
-
Deferred revenue
2,396
1,737
Warranty reserve
601
191
Notes payable, less current portion
783
746
Total non-current liabilities
4,620
3,090
Total liabilities
22,051
19,612
Shareholders' equity:
Common stock
110,063
132,042
Retained earnings
49,697
36,606
Accumulated other comprehensive income
25
-
Total shareholders' equity
159,785
168,648
Total liabilities and shareholders'
equity
$
181,836
$
188,260
Operating Income Per Share
(In thousands, except per share data)
Three Months Ended
Twelve Months Ended
March 31,
March 31,
2012
2011
2012
2011
Shares used in the calculation of operating
income per share:
Weighted average common shares outstanding -
basic
21,693
22,537
22,084
22,365
Weighted average common shares outstanding -
diluted
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