UNION CITY, Calif.,
Jan. 29, 2015 /PRNewswire/
-- Abaxis, Inc. (NasdaqGS: ABAX), a medical products company
manufacturing point-of-care blood analysis systems, today reported
financial results for the third fiscal quarter ended December 31, 2014.
Third quarter overview:
- Revenues of $59.5 million, up 46%
over last year's comparable quarter.
- Diluted EPS of $0.26, up 86% over
last year's comparable quarter.
Revenues highlights:
- North America revenues of
$49.0 million, up 54% over last
year's comparable quarter.
- International revenues of $10.5
million, up 16% over last year's comparable quarter.
- Medical market revenues of $11.8
million, up 51% over last year's comparable quarter.
- Veterinary market revenues of $46.9
million, up 46% over last year's comparable quarter.
- Total medical and veterinary instrument revenues of
$19.2 million, up 136% over last
year's comparable quarter.
- Total medical and veterinary instrument sales of 2,742 units,
up 120% over last year's comparable quarter.
- Total medical and veterinary reagent disc revenues of
$26.9 million, up 20% over last
year's comparable quarter.
- Total medical and veterinary reagent disc sales of 2.1 million
units, up 16% over last year's comparable quarter.
- Service revenues from Abaxis Veterinary Reference Laboratories
(AVRL) of $3.5 million, up 38% over
last year's comparable quarter.
Other financial highlights:
- Gross profit of $29.2 million, up
51% over last year's comparable quarter.
- Income from operations of $9.2
million, up 98% over last year's comparable quarter.
- Ratio of operating expenses (research and development, sales
and marketing and general and administrative expenses, excluding
the $17.3 million gain associated
with our legal settlement with Cepheid in the second quarter of
fiscal 2013) as percentage of revenues was 34%, a record low for
Abaxis.
- Cash, cash equivalents and investments as of December 31, 2014 of $133.1 million, an increase of $11.9 million from March
31, 2014.
- Cash dividend of $0.10 per share
paid during the third quarter of fiscal 2015.
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly dividend of $0.10 per
common share to be paid on March 17,
2015, to all shareholders of record as of the close of
business on March 3, 2015.
Quarterly Results
For the fiscal quarter ended December 31,
2014, Abaxis reported revenues of $59.5 million, as compared with revenues of
$40.8 million for the comparable
period last year, an increase of 46 percent. Revenues from
sales of instruments, which include chemistry analyzers, hematology
instruments, VSpro specialty analyzers and i-STAT analyzers,
increased by $11.1 million, or 136
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 $6.1
million, or 22 percent, compared to the same period last
year. Abaxis reported net income of $5.9 million for the fiscal quarter ended
December 31, 2014, compared to
$3.2 million for the fiscal quarter
ended December 31, 2013.
Abaxis' effective tax rate in the quarter ended December 31, 2014 was 34 percent, unchanged from
the same period last year. Abaxis reported diluted net income
per share of $0.26 (calculated based
on 22,756,000 shares) for the three-month period ended December 31, 2014, compared to $0.14 per share (calculated based on 22,500,000
shares) for the same period last year.
Nine-Month Results
For the nine-month period ended December
31, 2014, Abaxis reported revenues of $160.9 million, as compared with revenues of
$129.8 million for the comparable
period last year, an increase of 24 percent. Revenues from
instrument sales increased by $6.6
million, or 22 percent, compared to the same period last
year. Revenues from sales of consumables increased by
$19.3 million, or 22 percent, over
the same period last year. The company reported net income of
$16.0 million for the nine-month
period ended December 31, 2014,
compared to $10.4 million for the
same period last year. The company's effective tax rate in
the nine-month period ended December 31,
2014 was 36 percent, compared to 35 percent for the same
period last year. The company reported diluted net income per
share of $0.70 (calculated based on
22,717,000 shares) for the nine-month period ended December 31, 2014, compared to $0.46 per share (calculated based on 22,572,000
shares) for the same period last year.
Other Reported Information
Total sales in the medical market for the third quarter of
fiscal 2015 were $11.8 million, an
increase of 51 percent, compared to the same period last
year. Total sales in the veterinary market for the third
quarter of fiscal 2015 were $46.9
million, an increase of 46 percent, compared to the same
period last year. Total medical and veterinary reagent disc
sales for the third quarter of fiscal 2015 were $26.9 million, an increase of 20 percent,
compared to the same period last year. Total unit sales of
medical and veterinary reagent discs for the third quarter of
fiscal 2015 were 2.1 million units, an increase of 16 percent,
compared to the same period last year. Total medical and
veterinary instrument sales for the third quarter of fiscal 2015
were $19.2 million, an increase of
136 percent, compared to the same period last year. Total
unit sales of medical and veterinary instruments for the third
quarter of fiscal 2015 were 2,742 units, an increase of 120
percent, compared to the same period last year. Non-cash
compensation expense recognized for share-based awards during the
third quarter of fiscal 2015 was $2.7
million, compared to $1.6
million for the same period last year. Abaxis paid
$2.3 million in cash dividends to
shareholders during the third quarter of fiscal 2015.
During the third quarter of fiscal 2015, Abaxis entered into a
Share Purchase Agreement with Quality Clinical Reagents Limited and
Trio Diagnostics (Ireland) Ltd
("QCR and Trio"), both based in the United Kingdom pursuant to which, on
November 17, 2014, Abaxis acquired
100% of the outstanding stock of QCR and Trio for an aggregate
purchase price of approximately $6.5
million, of which $2.3 million
will be payable in fiscal years 2016 through 2017. QCR and
Trio are distributors of laboratory instrumentation and consumables
to the veterinary profession in the United Kingdom. In
connection with the acquisition, Abaxis recorded $1.6 million in intangible assets, consisting
primarily of customer relationships, and $103,000 in goodwill.
Clint Severson, chairman,
president and chief executive officer of Abaxis, said, "The third
quarter of fiscal 2015 was very strong with significant
double-digit revenue increases over last year's comparable quarter
in both our veterinary and medical markets. For the second
consecutive quarter, we achieved the highest quarterly revenue
total in the history of the company, $59.5
million, representing a 46% increase compared to last year's
third fiscal quarter. For our third fiscal quarter, medical
market revenues increased 51% and veterinary market revenues
increased 46%, both compared to last year's third fiscal quarter.
Net income increased 83% to $5.9
million and diluted earnings per share increased 86% to
$0.26 during the third quarter of
fiscal 2015, both compared to last year's third fiscal quarter.
We are pleased with the overall financial results."
"From an operational standpoint, we are particularly pleased
with the traction that has been achieved by our distribution
partners in the medical and veterinary markets," continued Mr.
Severson. "While I believe that we benefited to some extent
in Piccolo medical market placements by the recent developments
surrounding Ebola, Abbott, our distribution partner, has made
substantial quarter-over-quarter progress in developing new
customers and placing instruments in medical institutions
throughout the United States.
On the veterinary side of the business, execution on our
initiatives to drive sales with our strategic distribution partners
continued to contribute positively. "
Mr. Severson concluded, "Given the results of the first three
quarters of fiscal 2015, we are well positioned to conclude the
year on a strong note. Our distribution partners are doing a
great job of broadly embedding our leading-edge products and
technologies within the medical and veterinary communities.
We continue to maintain a solid financial foundation with
cash, cash equivalents and investments of $133.1 million at December
31, 2014. We are committed to operating effectively
and efficiently as we close out fiscal 2015 and we move into fiscal
2016 and beyond. We remain well positioned as a worldwide
leader in providing state-of-the-art point-of-care diagnostic
solutions for healthcare professionals in both the veterinary and
medical markets."
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, January 29, 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 10058425, through February
4, 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 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, Ehrlichia and Lyme disease. Abaxis,
through its AVRL division, provides routine laboratory testing as
well as specialty testing for veterinarians nationwide. For
more information, visit http://www.abaxis.com.
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.
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, 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, recent
quarterly reports on Form 10-Q and Abaxis' other periodic reports
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.
ABAXIS,
INC.
|
Condensed
Consolidated Statements of Income
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
December
31,
|
December
31,
|
|
2014
|
2013
|
2014
|
2013
|
Revenues
|
$
59,502
|
$
40,810
|
$
160,922
|
$
129,830
|
Cost of
revenues
|
30,335
|
21,477
|
79,451
|
67,733
|
Gross
profit
|
29,167
|
19,333
|
81,471
|
62,097
|
Operating
expenses:
|
|
|
|
|
Research
and development
|
3,585
|
3,596
|
11,764
|
10,187
|
Sales
and marketing
|
11,656
|
8,706
|
32,710
|
28,636
|
General
and administrative
|
4,770
|
2,408
|
11,475
|
8,316
|
Total operating
expenses
|
20,011
|
14,710
|
55,949
|
47,139
|
Income from
operations
|
9,156
|
4,623
|
25,522
|
14,958
|
Interest and other
income (expense), net
|
(197)
|
235
|
(595)
|
1,146
|
Income before income
tax provision
|
8,959
|
4,858
|
24,927
|
16,104
|
Income tax
provision
|
3,074
|
1,636
|
8,927
|
5,657
|
Net income
|
$
5,885
|
$
3,222
|
$
16,000
|
$
10,447
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
Basic net
income per share
|
$
0.26
|
$
0.14
|
$
0.71
|
$
0.47
|
Diluted net
income per share
|
$
0.26
|
$
0.14
|
$
0.70
|
$
0.46
|
Shares used in the
calculation of net income per share:
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
22,533
|
22,271
|
22,483
|
22,269
|
Weighted
average common shares outstanding - diluted
|
22,756
|
22,500
|
22,717
|
22,572
|
Cash dividends
declared per share
|
$
0.10
|
$
-
|
$
0.30
|
$
-
|
ABAXIS,
INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited and in
thousands)
|
|
|
December
31,
|
March
31,
|
|
2014
|
2014
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
89,770
|
$
73,589
|
Short-term
investments
|
19,508
|
29,102
|
Receivables,
net
|
31,361
|
29,227
|
Inventories
|
33,742
|
26,978
|
Prepaid
expenses and other current assets
|
5,149
|
2,452
|
Net deferred
tax assets, current
|
7,241
|
4,464
|
Total
current assets
|
186,771
|
165,812
|
Long-term
investments
|
23,834
|
18,491
|
Investment in
unconsolidated affiliate
|
2,720
|
2,646
|
Property and
equipment, net
|
29,602
|
27,176
|
Intangible assets,
net
|
2,031
|
1,624
|
Net deferred tax
assets, non-current
|
1,293
|
1,557
|
Other
assets
|
248
|
74
|
Total
assets
|
$
246,499
|
$
217,380
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
8,556
|
$
6,111
|
Accrued payroll
and related expenses
|
8,047
|
4,654
|
Accrued
taxes
|
996
|
1,144
|
Other accrued
liabilities
|
10,213
|
3,095
|
Deferred
revenue
|
1,273
|
1,208
|
Warranty
reserve
|
1,410
|
1,047
|
Total
current liabilities
|
30,495
|
17,259
|
Non-current
liabilities:
|
|
|
Deferred
revenue
|
3,411
|
4,035
|
Warranty
reserve
|
1,497
|
821
|
Net deferred
tax liabilities
|
311
|
-
|
Notes payable,
less current portion
|
505
|
581
|
Other
non-current liabilities
|
1,923
|
768
|
Total
non-current liabilities
|
7,647
|
6,205
|
Total
liabilities
|
38,142
|
23,464
|
Shareholders'
equity:
|
|
|
Common
stock
|
129,813
|
124,603
|
Retained
earnings
|
78,566
|
69,318
|
Accumulated
other comprehensive loss
|
(22)
|
(5)
|
Total
shareholders' equity
|
208,357
|
193,916
|
Total
liabilities and shareholders' equity
|
$
246,499
|
$
217,380
|
The following table presents our calculation of operating income
per share for the three and nine months ended December 31, 2014 and 2013.
Operating Income
Per Share
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
December
31,
|
December
31,
|
|
2014
|
2013
|
2014
|
2013
|
Income from
operations
|
$
9,156
|
$
4,623
|
$
25,522
|
$
14,958
|
|
|
|
|
|
Shares used in the
calculation of operating income per share:
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
22,533
|
22,271
|
22,483
|
22,269
|
Weighted
average common shares outstanding - diluted
|
22,756
|
22,500
|
22,717
|
22,572
|
|
|
|
|
|
Operating income per
share - basic
|
$
0.41
|
$
0.21
|
$
1.14
|
$
0.67
|
Operating income per
share - diluted
|
$
0.40
|
$
0.21
|
$
1.12
|
$
0.66
|
The following table presents our revenues by source for the
three and nine months ended December 31,
2014 and 2013.
Revenues by
Geographic Region and Customer Group
|
(In
thousands)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
December
31,
|
December
31,
|
Revenues by
Geographic Region
|
2014
|
2013
|
2014
|
2013
|
North
America
|
$
49,027
|
$
31,801
|
$
131,878
|
$
103,773
|
International
|
10,475
|
9,009
|
29,044
|
26,057
|
Total
revenues
|
$
59,502
|
$
40,810
|
$
160,922
|
$
129,830
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
December
31,
|
December
31,
|
Revenues by
Customer Group
|
2014
|
2013
|
2014
|
2013
|
Medical
Market
|
$
11,846
|
$
7,850
|
$
26,707
|
$
21,065
|
Veterinary
Market
|
46,865
|
32,207
|
131,800
|
106,493
|
Other
|
791
|
753
|
2,415
|
2,272
|
Total
revenues
|
$
59,502
|
$
40,810
|
$
160,922
|
$
129,830
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/abaxis-reports-record-revenues-for-the-third-quarter-of-fiscal-2015-300027654.html
SOURCE Abaxis, Inc.