ABAXIS Reports Record Second Quarter Financial Results
SUNNYVALE, Calif., Oct. 22 /PRNewswire/ -- ABAXIS, Inc. (Nasdaq: ABAX - news), a medical products company manufacturing point-of-care blood analysis systems, today reported record revenues for its second fiscal quarter ended September 30, 1998.
For the second fiscal quarter, revenues increased 6% to $3,483,000, compared with revenues of $3,288,000 for the same quarter last year. The Company reported a net loss of $1,033,000, compared to a net loss of $1,029,000 for the same quarter last year. Net loss per share for the quarter was $0.07 (calculated based on 13,883,000 shares) compared to a net loss per share of $0.15 (calculated based on 11,887,000 shares) for the same quarter last year. The second quarter of last year reflects the impact of the conversion feature imbedded in the company's preferred stock offering completed in July 1997. Excluding the impact of the conversion feature net loss per share would have been $0.09 in the second quarter of last year. The increased number of shares in the second quarter of fiscal 1999 as compared to the same quarter last year was primarily due to an equity financing which was completed in the quarter ended June 30, 1998.
For the six months ended September 30, 1998, revenues increased 12% to $6,762,000 compared with revenues of $6,041,000 for the same period last year. The company reported a net loss of $2,085,000, a 13% improvement compared to a net loss of $2,409,000 for the same six-month period last year. Net loss per share for the six months ended September 30, 1998 was $0.15 compared to a net loss per share of $0.27 for the same period last year. The net loss per share for the six-month period last year was $0.27 on approximately 11,887,000 shares, including the one-time impact of the conversion feature imbedded in the preferred stock offering valued at $0.06 per share. For the six-month period ended September 30,1997, net loss per share from operations was $0.21, excluding the impact of the conversion feature.
Clint Severson, President and Chief Executive Officer of ABAXIS, commented, ''Our most significant accomplishment this quarter was an increase in our gross margin to 30% versus 13% for the quarter ending September 30, 1997. In addition, we achieved another record quarter in terms of revenues, although we sold a total of 216 new Piccolo and VetScan systems compared to 281 for the second quarter of 1997. It's important to note that our shipments of VetScan in the U.S. increased to 183 units in the second quarter from 83 units for the same quarter last year. The overall decrease in unit shipments was attributed to slower sales to Japan and the U.S. military. We shipped a record number of more than 180,000 reagent discs during the second quarter compared to 111,730 in the second quarter last year.''
''During the second quarter of fiscal 1999, shipments to our core market, the U.S. veterinary market, continued to grow dramatically. The revenue from this market increased 102% from the same quarter last year. In addition, our shipments to Europe increased 125% from the same quarter last year. These increases were offset by declines in our shipments to Asia and the U.S. military. Our near-term strategy is to continue to focus our resources primarily in the U.S. veterinary market and secondly in the European market. We believe that these two significant markets can provide us the momentum toward profitability.''
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 Six Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
(Unaudited) (Unaudited)
Statements of Operations Data:
Net revenues $3,483 $3,288 $6,762 $6,041
Costs and operating
expenses:
Cost of product sales 2,431 2,866 5,029 5,461
Research and development 712 368 1,233 743
Selling, general
and administrative 1,317 1,172 2,570 2,388
Total costs and operating
expenses 4,460 4,406 8,832 8,592
Loss from operations (977) (1,118) (2,070) (2,551)
Other income, net (52) 85 (15) 142
Net loss $(1,029) $(1,033) $(2,085) $(2,409)
Net loss per share
applicable to common stock $(0.07) $(0.15)(a) $(0.15) $(0.27)(a)
Shares used in calculating
net loss per share 13,883 11,887 13,669 11,887
(a) Net loss per share reflects a one-time impact of the conversion
feature imbedded in the July 1997 preferred stock offering valued at
$0.06 per share
Balance Sheet Data:
Sept. 30, 1998 March 31, 1998
(Unaudited) (a)
Cash, cash equivalents and
short-term investments $4,243 $5,897
Total current assets 8,584 9,638
Property, plant and equipment, net 2,630 2,309
Other non-current assets 197 85
Total assets 11,411 12,032
Current liabilities 4,370 3,886
Long term liabilities 1,218 263
Total shareholders' equity 5,823 7,883
Total liabilities and shareholders' equity 11,411 12,032
(a) Derived from the Company's audited financial statements.
FOLLOWING ARE DETAILS FOR TODAY'S CONFERENCE CALL"
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Q%2 1999 confbrence The Entry code word to participate is
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to participate in the conference call, a playback of the conference will be
available at 11 00 AM PDT/ 2:00 PM EDT 10-22-98 through 11.00 AM
PDT/2:O0 PM EDT 10-23-98 by calling 8OO-633-8284 entry code 1650889.
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