UNION CITY, Calif.,
April 27, 2017 /PRNewswire/
-- Abaxis, Inc. (NasdaqGS: ABAX), a global diagnostics company
manufacturing point-of-care blood analysis instruments and
consumables for the medical and veterinary markets worldwide, today
reported financial results for the fourth quarter and fiscal year
ended March 31, 2017.
Fourth quarter and fiscal 2017 include:
- Revenues from continuing operations of $58.2 million for the fourth quarter, up 2% over
last year's comparable quarter, and $227.2
million for fiscal 2017, up 4% year-over-year.
- Veterinary market revenues for the fourth quarter of
$47.4 million, up 2% over last year's
comparable quarter, and $186.7
million for fiscal 2017, up 5% year-over-year.
- Revenues from sales of consumables, which include reagent
discs, hematology reagent kits, VSpro specialty cartridges,
i-STAT cartridges and rapid tests, of $44.8
million, up 4% over last year's comparable quarter, and
$175.3 million for fiscal 2017, up 6%
year-over year.
- Total medical and veterinary reagent disc revenues for the
fourth quarter of $32.6 million, up
4% over last year's comparable quarter, and $123.8 million for fiscal 2017, up 2%
year-over-year.
- Total medical and veterinary reagent disc sales of 2.6 million
units for the fourth quarter, up 6% over last year's comparable
quarter, and 10.0 million units for fiscal 2017, up 4%
year-over-year.
- Total medical reagent disc revenues for the fourth quarter of
$7.5 million, up 12% from last year's
comparable quarter, and $28.3 million
for fiscal 2017, up 10% year-over-year.
- Total medical and veterinary instrument revenues for the fourth
quarter of $10.0 million, down 10%
from last year's comparable quarter, and $39.3 million for fiscal 2017, down 9%
year-over-year.
- Gross profit of $32.2 million for
the fourth quarter, unchanged from last year's comparable quarter,
and $125.8 million for fiscal 2017,
up 2% year-over-year.
- Cash, cash equivalents and investments as of March 31, 2017 of $165.1
million.
- Abaxis paid dividends of $11.7
million in fiscal 2017.
Management Discussion
Clint Severson, chairman and
chief executive officer of Abaxis, said, "Revenues for fiscal 2017
grew 4% to $227.2 million and
revenues for the fourth quarter of fiscal 2017 increased by 2% to
$58.2 million. We had record
reagent disc sales of 10.0 million units in fiscal 2017, an
increase of 4%, led by a 12% increase in our medical reagent disc
sales to 3.9 million units in fiscal 2017. Consumables
revenues for the fiscal year increased by 6% to $175.3 million, representing 77% of total sales.
The successful rollout of our hematology instruments to over
900 Banfield hospitals in fiscal 2017 contributed to our
consumables growth."
"We are responding to competitive challenges, as we are
initiating new sales and marketing strategies. In addition,
we have increased our efforts to expand our product portfolio with
internal research and development efforts, as well as investments
in OEM opportunities with third parties. For example, in the
veterinary market, we launched the VetScan VUE, an app-based rapid
assay reader in the third quarter of fiscal 2017, and the VetScan
Phenobarbital Profile in March 2017.
We anticipate additional new product launches in fiscal 2018,
including our VetScan FUSE connectivity system, which is nearing
the completion of beta-testing, our canine pancreatic lipase
point-of-care assay and two urinalysis products. We believe
these initiatives will drive excellent long-term growth for Abaxis,
and we remain excited about our future.
Mr. Severson concluded, "I am pleased by our strong financial
foundation. We continued to reward our shareholders with a
quarterly cash dividend of $0.14 per
common share in the fourth quarter of fiscal 2017. We had
$165.1 million in cash, cash
equivalents and short- and long-term investments as of March 31, 2017. Our strong balance sheet
and cash flow allows us to continue to invest aggressively to
enhance our product portfolio to drive long-term revenue growth in
our medical and veterinary businesses. Looking forward to
fiscal 2018, we're positioned for a great year ahead."
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly cash dividend of $0.14 per
common share, to be paid on June 15,
2017, to all shareholders of record as of the close of
business on June 1, 2017.
Results of Operations
Quarterly Results
For the fiscal quarter ended March 31,
2017, Abaxis reported revenues from continuing operations of
$58.2 million, as compared with
revenues of $57.0 million for the
comparable period last year. Revenues from sales of
instruments, which include chemistry analyzers, hematology
instruments, VSpro specialty analyzers and i‑STAT analyzers,
decreased by $1.1 million, or 10%,
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 $1.7 million, or
4%, over the same period last year. Abaxis reported income
from continuing operations of $11.6
million and net income from continuing operations of
$7.5 million for the fiscal quarter
ended March 31, 2017, compared to
$12.4 million and $8.3 million for the fiscal quarter ended
March 31, 2016, respectively.
Abaxis' effective tax rate in the fiscal quarter ended March 31, 2017 was 35%, compared to 33% for the
same period last year. Abaxis reported diluted net income per
share from continuing operations of $0.33 (calculated based on 22,870,000 shares) for
the fiscal quarter ended March 31,
2017, compared to $0.39 per
share (calculated based on 22,810,000 shares) for the same period
last year.
Fiscal 2017 Results
For the fiscal year ended March 31,
2017, Abaxis reported revenues from continuing operations of
$227.2 million, as compared with
revenues of $218.9 million for the
comparable period last year, an increase of 4%. Revenues from
instrument sales decreased by $3.8
million, or 9%, compared to the same period last year.
Revenues from consumables sales, increased by $10.3 million, or 6%, over the same period last
year. Abaxis reported income from continuing operations of
$51.1 million and net income from
continuing operations of $32.8
million (which includes a gain from sale of an equity method
investment of $3.8 million after tax)
for fiscal 2017, compared to $47.1
million and $31.1 million for
the prior year, respectively. Abaxis' effective tax rate in
the fiscal year ended March 31, 2017
was 36%, compared to 34% for the same period last year.
Abaxis reported diluted net income per share from continuing
operations of $1.44 (calculated based
on 22,797,000 shares) for fiscal 2017, compared to $1.36 per share (calculated based on 22,883,000
shares) for fiscal 2016.
Other Reported Information
Non-cash compensation expense recognized for share-based awards
during the three-months ended March 31,
2017 and 2016 was $3.0 million
and $2.9 million, respectively.
Abaxis paid $3.2 million in cash
dividends to shareholders during the fourth quarter of fiscal
2017.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, April 27, 2017.
Participants can dial (844) 855-9498 or (412) 317-5496 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 10105658, through May
4, 2017. 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, Inc. is a worldwide developer, manufacturer and marketer
of portable blood analysis systems that are used in a broad range
of medical specialties in human or veterinary patient care to
provide clinicians with rapid blood constituent measurements.
Our mission is to improve the efficiency of care delivery to and
the quality of life of patients in the medical and veterinary
markets. We provide leading edge technology and tools that
support best medical practices, enabling physicians and
veterinarians to respond to the health needs of their clients at
the point of care while operating economical and profitable
practices. For more information, visit
http://www.abaxis.com.
Forward Looking Statements
This press release includes 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 the effects of
Abaxis' new sales and marketing strategies, Abaxis' expansion of
its product portfolio, including investments in OEM opportunities,
Abaxis' ability to drive future medical and veterinary sales, drive
operational efficiencies, invest in key growth initiatives and
drive both top and bottom line growth, the expected launch timing
for new point-of-care urine sediment and chemistry analyzers, the
ability of new products to benefit Abaxis' long-term growth, and
payment of future cash dividends. 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. Forward-looking statements
contained in this press release may be affected by risks and
uncertainties that may cause actual results to differ materially
from those projected or implied in such forward-looking statements,
including, but not limited to, risks and uncertainties related to
Abaxis' manufacturing operations, including the vulnerability of
its manufacturing operations to potential interruptions and delays
and its ability to manufacture products free of defects, Abaxis'
ability to compete effectively, market acceptance of Abaxis'
products, fluctuations in quarterly operating results and
difficulty in predicting future results, the performance of Abaxis'
independent distributors and Abaxis' ability to manage their
inventory levels effectively, expansion of Abaxis' sales and
marketing and distribution efforts, Abaxis' dependence on Abbott
Point of Care, Inc. for its U.S. medical sales, dependence on sole
or limited source suppliers, the effect of exchange rate
fluctuations on international operations, dependence on key
personnel, risks related to the protection of Abaxis' intellectual
property or claims of infringement of intellectual property
asserted by third parties. Readers should also refer to the
section entitled "Risk Factors" in Abaxis' Annual Report on Form
10-K, and subsequently filed quarterly reports on Form 10-Q 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.
Financial Tables to Follow
ABAXIS,
INC.
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
March
31,
|
March
31,
|
|
2017
|
2016
|
2017
|
2016
|
Revenues
|
$
58,200
|
$ 56,960
|
$
227,220
|
$ 218,901
|
Cost of
revenues
|
26,018
|
24,664
|
101,375
|
95,649
|
Gross
profit
|
32,182
|
32,296
|
125,845
|
123,252
|
Operating
expenses:
|
|
|
|
|
Research
and development
|
4,880
|
4,548
|
19,795
|
18,388
|
Sales
and marketing
|
11,542
|
10,760
|
45,249
|
42,526
|
General
and administrative
|
4,600
|
4,683
|
16,314
|
15,984
|
Total operating
expenses
|
21,022
|
19,991
|
81,358
|
76,898
|
Income from
operations
|
11,160
|
12,305
|
44,487
|
46,354
|
Interest and other
income (expense), net
|
428
|
77
|
6,625
|
793
|
Income from
continuing operations before income tax provision
|
11,588
|
12,382
|
51,112
|
47,147
|
Income tax
provision
|
4,045
|
4,080
|
18,333
|
16,073
|
Income from
continuing operations
|
7,543
|
8,302
|
32,779
|
31,074
|
Discontinued
operations
|
|
|
|
|
Income (loss)
from discontinued operations, net of tax
|
7
|
-
|
(63)
|
(3)
|
Gain on sale
of discontinued operations, net of tax
|
-
|
559
|
-
|
559
|
Net income
|
$
7,550
|
$
8,861
|
$
32,716
|
$
31,630
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
Basic
|
|
|
|
|
Continuing operations
|
$
0.33
|
$
0.37
|
$
1.46
|
$
1.37
|
Discontinued operations
|
-
|
0.02
|
(0.01)
|
0.03
|
Basic net
income per share
|
$
0.33
|
$
0.39
|
$
1.45
|
$
1.40
|
Diluted
|
|
|
|
|
Continuing operations
|
$
0.33
|
$
0.36
|
$
1.44
|
$
1.36
|
Discontinued operations
|
-
|
0.03
|
-
|
0.02
|
Diluted net
income per share
|
$
0.33
|
$
0.39
|
$
1.44
|
$
1.38
|
|
|
|
|
|
Shares used in the
calculation of net income per share:
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
22,539
|
22,593
|
22,515
|
22,661
|
Weighted
average common shares outstanding - diluted
|
22,870
|
22,810
|
22,797
|
22,883
|
Cash dividends
declared per share
|
$
0.14
|
$
0.11
|
$
0.52
|
$
0.44
|
ABAXIS,
INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited and in
thousands)
|
|
|
|
|
March
31,
|
March
31,
|
|
2017
|
2016
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
91,332
|
$
88,323
|
Short-term
investments
|
51,561
|
41,474
|
Receivables,
net
|
40,568
|
35,148
|
Inventories
|
39,010
|
35,131
|
Prepaid
expenses and other current assets
|
4,997
|
6,351
|
Net deferred
tax assets, current
|
5,644
|
4,810
|
Current assets
of discontinued operations
|
66
|
961
|
Total
current assets
|
233,178
|
212,198
|
Long-term
investments
|
22,171
|
22,458
|
Investment in
unconsolidated affiliates
|
2,850
|
2,705
|
Property and
equipment, net
|
34,260
|
26,842
|
Intangible assets,
net
|
1,171
|
1,324
|
Net deferred tax
assets, non-current
|
4,392
|
3,903
|
Other
assets
|
7,624
|
1,950
|
Total
assets
|
$
305,646
|
$
271,380
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
7,517
|
$
7,292
|
Accrued payroll
and related expenses
|
9,606
|
8,349
|
Accrued
taxes
|
2,151
|
1,145
|
Current
liabilities of discontinued operations
|
85
|
112
|
Other accrued
liabilities
|
11,006
|
9,393
|
Deferred
revenue
|
1,415
|
1,600
|
Warranty
reserve
|
1,663
|
1,281
|
Total
current liabilities
|
33,443
|
29,172
|
Non-current
liabilities:
|
|
|
Deferred
revenue
|
1,460
|
2,274
|
Warranty
reserve
|
2,695
|
1,927
|
Net deferred
tax liabilities
|
234
|
384
|
Notes payable,
less current portion
|
278
|
379
|
Other
non-current liabilities
|
1,312
|
932
|
Total
non-current liabilities
|
5,979
|
5,896
|
Total
liabilities
|
39,422
|
35,068
|
Shareholders'
equity:
|
|
|
Common
stock
|
135,932
|
127,016
|
Retained
earnings
|
130,304
|
109,303
|
Accumulated
other comprehensive loss
|
(12)
|
(7)
|
Total
shareholders' equity
|
266,224
|
236,312
|
Total
liabilities and shareholders' equity
|
$
305,646
|
$
271,380
|
The following table presents our revenues by source for the
three and twelve months ended March 31,
2017 and 2016.
Revenues by
Geographic Region and Customer Group
|
(Unaudited and in
thousands)
|
|
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
March
31,
|
March
31,
|
|
2017
|
2016
|
2017
|
2016
|
Revenues by
Geographic Region
|
|
|
|
|
North
America
|
$ 46,525
|
$ 46,423
|
$ 181,853
|
$ 175,019
|
International
|
11,675
|
10,537
|
45,367
|
43,882
|
Total
revenues
|
$ 58,200
|
$ 56,960
|
$ 227,220
|
$ 218,901
|
|
|
|
|
|
Revenues by
Customer Group
|
|
|
|
|
Medical
Market
|
$
9,472
|
$
9,528
|
$
36,602
|
$
37,845
|
Veterinary
Market
|
47,442
|
46,583
|
186,661
|
177,667
|
Other
|
1,286
|
849
|
3,957
|
3,389
|
Total
revenues
|
$ 58,200
|
$ 56,960
|
$ 227,220
|
$ 218,901
|
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SOURCE Abaxis, Inc.