ABAXIS Announces First Quarter Results
SUNNYVALE, Calif., July 23 /PRNewswire/ -- ABAXIS, Inc. (Nasdaq: ABAX - news), a medical products company manufacturing point-of-care blood chemistry systems, today reported results for the first quarter of fiscal 1999 ended June 30, 1998.
For the first fiscal quarter, revenues increased 19% to $3,279,000, compared with revenues of $2,753,000 for the same quarter last year. The company reported a net loss of $1,056,000 a 23% reduction compared to a net loss of $1,376,000 for the same quarter last year. Net loss per share was $0.08, on approximately 13,466,000 shares, compared to $0.12 per share on approximately 11,886,000 shares for the same quarter last year. The increase in the number of shares is primarily due to an equity financing which was completed in July 1997.
''One of the key success factors at Abaxis is increasing the gross margin of consumables,'' commented Clint Severson, Chairman and CEO. For the first time in company history we achieved a positive margin on our consumable reagent disc sales. We saw a significant increase in reagent disc shipments and we are seeing an increase in the use of discs per installed system. This gives us an indication that customers are satisfied with the Abaxis products.''
The company sold a total of 198 new Piccolo and VetScan systems this quarter, compared to 249 for the first quarter of 1998. The decrease was attributed to slower sales to Japan and disc base shortages in May. A total of 178,000 reagent discs were sold, an increase of 76%, compared to 101,230 in first quarter 1998, and also up 33% over fourth quarter 1998.
Gross margin percentage, was 20.8%, compared to 5.8% for the first quarter 1998. The gross margin on reagent discs was also positive, finishing at 5.2% for the quarter. The increase in margins was the primary factor for the decrease in the net loss.
''We are also happy to report that the automated disc assembly line was delivered and installed and is currently being optimized. In addition, clinical trials on the electrolytes have begun,'' said Clint Severson.
Founded in 1989, ABAXIS develops, manufactures and markets portable blood analysis systems for use in any patient-care setting to provide clinicians with rapid blood constituent measurements. The system consists of a compact, 6.9 kilogram, portable analyzer and a series of 8 cm diameter single-use plastic disks, called reagent discs, that contain all the reagents necessary to perform a fixed menu of tests. The system can be operated with minimal training and perform multiple tests on whole blood using either venous or fingerstick samples. The system provides test results in less than 14 minutes with the precision and accuracy equivalent to a clinical laboratory.
This press release contains forward-looking statements which are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The future events described in such statements involve risks and uncertainties, including but not limited to, risks and uncertainties related to the market acceptance of the Company's products and the continuing development of its products, risks associated with manufacturing and distributing its products on a commercial scale, general market conditions, competition, risks and uncertainties related to its ability to raise capital in order to fund its operations and other risks detailed from time to time in ABAXIS' periodic reports filed with the United States Securities and Exchange Commission.
Abaxis, Inc.,
Summary Financial Information
(in thousands, except per share data)
Three Months Ended
June 30
(Unaudited)
1998 1997
Statements of Operations Data:
Net revenues $3,279 $2,753
Costs and operating expenses:
Cost of product sales 2,598 2,595
Research and development 521 375
Selling, general and administrative1,253 1,216
Total costs and operating expenses 4,372 4,186
Loss from operations (1,093) (1,433)
Other Income, net 37 57
Net loss $(1,056) $(1,376)
Net loss per share
applicable to common stock $(0.08) $(0.12)
Shares used in calculating
net loss per share 13,466 11,866
Balance Sheet Data:
June 30,1998 March 31, 1998
(Unaudited) (Audited)*
Cash, cash equivalents and
short-term investments $3,574 $5,897
Total current assets 7,703 9,638
Property, plant and equipment, net 2,543 2,309
Other non-current assets 79 85
Total assets 10,325 12,032
Current liabilities 3,255 3,886
Long term liabilities 222 263
Total shareholders' equity 6,848 7,883
Total liabilities and
shareholders' equity 10,325 12,032
* Derived from the company's audited financial statements.
SOURCE: ABAXIS, Inc. |
