ABAXIS Reports Record Second Quarter Revenues
First Quarter in Company History of More Than $3 Million Net Revenues
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 23, 1997--ABAXIS, Inc. (NASDAQ:ABAX), a medical products company manufacturing point-of-care blood analysis systems, today reported record revenues for its second fiscal quarter ended September 30, 1997.
For the second fiscal quarter, revenues increased 81% to $3,288,000, compared with revenues of $1,813,000 for the same quarter last year. The company reported a net loss of $1,033,000, a 34% reduction compared to a net loss of $1,562,000 for the same quarter last year. Net loss per share for the quarter was $0.15 on approximately 11,887,000 shares, reflecting the impact of the conversion feature imbedded in the preferred stock offering in July 1997, netting the company approximately $2,880,000, which was valued at $0.06 per share. Excluding this one-time calculated valuation, net loss per share would have been $0.09. Net loss per share for the same quarter last year was $0.16 per share on approximately 9,869,000 shares. The increased number of shares was primarily due to an equity financing which concluded in the quarter ended in December 1996.
For the six months ended September 30, 1997, revenues increased 100% to $6,041,000, compared with revenues of $3,024,000 for the same period last year. The company reported a net loss of $2,409,000, a 35% improvement compared to a net loss of $3,733,000 for the same six-month period last year. Net loss per share for the six-month period 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 non-recurring calculated valuation. Net loss per share for the same period last year was $0.38 per share on approximately 9,874,000 shares.
Clint Severson, president and chief executive officer of ABAXIS, commented, ''Once again we achieved another record quarter in terms of revenues and unit sales. We sold a total of 281 new Piccolo and VetScan systems this quarter bringing our total installed base to approximately 1,645. We shipped a record number of more than 110,000 reagent discs during the second quarter, further evidence that our razor/razor blade business model is working according to expectations. We are very proud of the fact that we continue to make significant improvement in reducing our net loss. We also generated another consecutive quarter of positive gross margin, continuing another trend of improving financial performance.
''During the second quarter of fiscal 1998, we continued shipping and installing systems against orders for new systems from the contract we closed in March 1997 with the US Navy. The majority of the current orders from the Navy, which represented approximately 50% of the contracted number of analyzers, have been fulfilled at this time. VetScan orders from Japan, during the second quarter, was strong attributable to our receiving regulatory approval in July 1997 from the Japanese Ministry of Agriculture, Forestry and Fishery, permitting sales of the VetScan systems in Japan. Indications are that orders from Japan for VetScan systems for the third quarter of fiscal 1998 will increase again. We have shipped an initial order of 28 Piccolo Blood Analyzer systems for use by the Instituto Mexicano del Securo Social (IMSS). These units are currently being installed in rural clinics throughout Mexico. We expect to receive an initial order for reagent discs shortly after the systems have been installed.
''Our marketing strategy remains focused on those market segments where our current products are a significant improvement compared to any other blood analysis testing products currently available to those customers. We are meeting our customers' demands while working on improving our manufacturing processes to increase throughput. In addition, we continue to develop an automated production line to significantly increase our manufacturing capacity to meet the anticipated future demand for our reagent discs. We have also recently announced a search for a new Vice President of Operations to oversee our expansion. Concurrently, we are working diligently to develop additional methods and provide an increasingly complete menu of clinical chemistry for the medical market. A $3 million private placement was completed in July of this year to help fund the additional R&D and other costs associated with bringing these additional methods to the market place.''
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
September 30, September 30,
(Unaudited) (Unaudited)
1997 1996 1997 1996
Statements of Operations
Data:
Net revenues $3,288 $1,813 $6,041 $3,024
Costs and operating
expenses:
Cost of product sales 2,866 1,789 5,461 3,611
Research and development 368 318 743 709
Selling, general and
administrative 1,172 1,329 2,388 2,590
Total costs and operating
expenses 4,406 3,436 8,592 6,910
Loss from operations (1,118) (1,623) (2,551) (3,886)
Other income, net 85 61 142 153
Net loss $(1,033) $(1,562) $(2,409) $(3,733)
Net loss per share
applicable to common
stock $(0.15)(a) $(0.16) $(0.27)(a) $(0.38)
Shares used in
calculating net loss
per share 11,887 9,869 11,887 9,874
(a) Net loss per share reflects a one-time impact of conversion
feature imbedded in the July 1997 preferred stock offering valued at
$.06 per share
Balance Sheet Data:
30-Sep-97 31-Mar-97
(Unaudited) (1)
Cash, cash equivalents and
short-term investments $8,544 $5,321
Total current assets 11,722 9,444
Property, plant and equipment,
net 2,323 2,453
Other non-current assets 88 80
Total assets 14,133 11,977
Current liabilities 4,137 2,619
Long-term liabilities 313 --
Total shareholders' equity 9,683 9,358
Total liabilities and
shareholders' equity 14,133 11,977
(1) Derived from the Company's audited financial statements.
------------------------------------------------------------------------
Contact:
ABAXIS, Inc.
Ting Lu, 408/734-0200
or
Coffin Communications Group
John Muir, 818/789-0100 |
