UNION CITY, Calif.,
Jan. 28, 2016 /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 third fiscal quarter ended December 31, 2015.
Third quarter highlights include:
- Total medical and veterinary reagent disc sales of 2.3 million
units, up 12% over last year's comparable quarter.
- International revenues of $11.8
million, up 12% over last year's comparable quarter.
- Gross profit from continuing operations of $29.6 million, up 3% over last year's comparable
quarter.
- Income from operations of $11.3
million, up 16% over last year's comparable quarter.
- Diluted EPS from continuing operations of $0.35, up 30% over last year's comparable
quarter.
- Cash, cash equivalents and investments of $155.4 million as of December 31, 2015.
- Abaxis paid dividends of $2.5
million, or $0.11 per share,
during the third quarter of fiscal 2016.
"Revenues in the third quarter of fiscal 2016 reflected strong
growth in consumable sales," said Clint
Severson, chairman and chief executive officer of
Abaxis. "Unit sales of our higher margin medical and
veterinary reagent discs increased by 12% over last year's third
quarter. In particular, our medical reagent disc sales were
strong, increasing by 23% over last year's third quarter.
These results reflect continued strength in our portfolio of
consumable products."
Mr. Severson continued, "We are targeting continued momentum in
the medical market, both domestically and internationally. We
believe the medical market represents a significant opportunity for
Abaxis in the coming years. We have made consistent progress
in building our medical business through our partnership with
Abbott Point of Care, Inc. and
expect it to become an even larger contributor to our results going
forward. Furthermore, during the third quarter of fiscal
2016, we sold 200 Piccolo Xpress instruments to a leading medical
device distributor in the People's
Republic of China and we look forward to continuing to
provide our Piccolo medical products through our distribution
partnership."
Mr. Severson continued, "We also expanded our growth
opportunities in the veterinary market. In the third quarter
of fiscal 2016, we entered into a five-year supply agreement with
Banfield Pet Hospitals to provide our VetScan hematology analyzers
and associated consumables to all of Banfield's more than 900 pet
hospital locations, with installation and training to begin late in
our fourth quarter of fiscal 2016. We are excited about the
possibilities these new relationships offer. Our solid
earnings results reflect continued strength in our operating
margins and were also supported by a lower effective tax rate for
the third quarter of fiscal 2016 due to the reinstatement of the
federal research and development tax credit."
Mr. Severson concluded, "All in all, we are pleased with the
results of the quarter. While the results for last year's
comparable quarter was very strong due to the Ebola crisis and the
impact of our new distributor partners in the veterinary market, we
remain focused on continuing to grow our business in a cost
efficient manner. "
Dividend Declared
Abaxis today announced that its Board of Directors declared a
quarterly cash dividend of $0.11 per
common share, to be paid on March 17,
2016, to all shareholders of record as of the close of
business on March 3, 2016.
Results of Continuing Operations
Quarterly Results
For the fiscal quarter ended December 31,
2015, Abaxis reported revenues from continuing operations of
$52.9 million, as compared with
revenues of $56.1 million for the
comparable period last year, a decrease of 6 percent.
Revenues from sales of instruments, which include chemistry
analyzers, hematology instruments, VSpro specialty analyzers
and i‑STAT analyzers, decreased by $7.6
million, or 40 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
$4.2 million, or 12 percent, over the
same period last year. Abaxis reported net income from
continuing operations of $8.0 million
for the fiscal quarter ended December 31,
2015, compared to $6.2 million
for the fiscal quarter ended December
31, 2014. Abaxis' effective tax rate in the fiscal
quarter ended December 31, 2015 was
31 percent, compared to 35 percent for the same period last
year. Abaxis reported diluted net income per share from
continuing operations of $0.35
(calculated based on 22,889,000 shares) for the fiscal quarter
ended December 31, 2015, compared to
$0.27 per share (calculated based on
22,756,000 shares) for the same period last year.
Nine-Month Results
For the nine-month period ended December
31, 2015, Abaxis reported revenues from continuing
operations of $161.9 million, as
compared with revenues of $150.6
million for the comparable period last year, an increase of
8 percent. Revenues from instrument sales decreased by
$5.0 million, or 14 percent, compared
to the same period last year. Revenues from consumables sales
increased by $15.3 million, or 14
percent, over the same period last year. Abaxis reported net
income from continuing operations of $22.8
million for the nine-month period ended December 31, 2015, compared to $17.0 million for the same period last
year. Abaxis' effective tax rate in the nine-month period
ended December 31, 2015 was 34
percent, compared to 36 percent for the same period last
year. Abaxis reported diluted net income per share from
continuing operations of $1.00
(calculated based on 22,884,000 shares) for the nine-month period
ended December 31, 2015, compared to
$0.75 per share (calculated based on
22,717,000 shares) for the same period last year.
Other Reported Information
Non-cash compensation expense recognized for share-based awards
during the third quarter of fiscal 2016 was $2.4 million, compared to $2.7 million for the same period last year.
Abaxis paid $2.5 million in cash
dividends to shareholders during the third quarter of fiscal
2016.
Conference Call
Abaxis has scheduled a conference call to discuss its financial
results at 4:15 p.m. Eastern Time on
Thursday, January 28, 2016.
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 10079319, through February
4, 2016. 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, 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' goals for continued momentum in the medical
market, estimates regarding the medical market size and
opportunities, expectations regarding the contributions of its
partnership with Abbott Point of
Care, Inc. to Abaxis' results going forward, expectations regarding
its distribution partnership in the
People's Republic of China, the possibilities that the
Banfield Pet Hospitals relationship may offer, payment of future
cash dividends, financial resources and potential for future
growth, market acceptance and penetration of product offerings, and
future revenues, income 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 Abaxis' manufacturing
operations, including the vulnerability of its manufacturing
operations to potential interruptions and delays and its ability to
manufacture products free of defects, the effect of exchange rate
fluctuations on international operations, fluctuations in quarterly
operating results and difficulty in predicting future results,
Abaxis' dependence on Abbott Point of Care, Inc. for its U.S.
medical sales, the performance of Abaxis' independent distributors
and Abaxis' ability to manage their inventory levels effectively,
dependence on sole or limited source suppliers, the market
acceptance of Abaxis' products, expansion of Abaxis' sales and
marketing and distribution efforts, dependence on key personnel,
the continuing development of its products, required United States
Food and Drug Administration clearance and other government
approvals, 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. 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
|
|
Nine Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
2014
|
|
2015
|
2014
|
Revenues
|
$
52,876
|
$
56,051
|
|
$
161,941
|
$
150,576
|
Cost of
revenues
|
23,274
|
27,268
|
|
70,985
|
70,014
|
Gross
profit
|
29,602
|
28,783
|
|
90,956
|
80,562
|
Operating
expenses:
|
|
|
|
|
|
Research
and development
|
4,428
|
3,585
|
|
13,840
|
11,764
|
Sales
and marketing
|
10,395
|
10,742
|
|
31,766
|
30,193
|
General
and administrative
|
3,524
|
4,770
|
|
11,301
|
11,475
|
Total operating
expenses
|
18,347
|
19,097
|
|
56,907
|
53,432
|
Income from
operations
|
11,255
|
9,686
|
|
34,049
|
27,130
|
Interest and
other income (expense), net
|
231
|
(197)
|
|
716
|
(595)
|
Income from
continuing operations before income tax provision
|
11,486
|
9,489
|
|
34,765
|
26,535
|
Income tax
provision
|
3,532
|
3,274
|
|
11,993
|
9,534
|
Income from
continuing operations
|
7,954
|
6,215
|
|
22,772
|
17,001
|
Discontinued
operations
|
|
|
|
|
|
Income (loss)
from discontinued operations, net of tax
|
4
|
(330)
|
|
(3)
|
(1,001)
|
Net income
|
$
7,958
|
$
5,885
|
|
$
22,769
|
$
16,000
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
Basic
|
|
|
|
|
|
Continuing operations
|
$
0.35
|
$
0.27
|
|
$
1.00
|
$
0.75
|
Discontinued operations
|
-
|
(0.01)
|
|
-
|
(0.05)
|
Basic net
income per share
|
$
0.35
|
$
0.26
|
|
$
1.00
|
$
0.70
|
Diluted
|
|
|
|
|
|
Continuing operations
|
$
0.35
|
$
0.27
|
|
$
1.00
|
$
0.75
|
Discontinued operations
|
-
|
(0.01)
|
|
-
|
(0.05)
|
Diluted net
income per share
|
$
0.35
|
$
0.26
|
|
$
1.00
|
$
0.70
|
Shares used in the
calculation of net income per share:
|
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
22,725
|
22,533
|
|
22,684
|
22,483
|
Weighted
average common shares outstanding - diluted
|
22,889
|
22,756
|
|
22,884
|
22,717
|
Cash dividends
declared per share
|
$
0.11
|
$
0.10
|
|
$
0.33
|
$
0.30
|
|
|
|
|
|
|
|
ABAXIS,
INC.
Condensed
Consolidated Balance Sheets
(Unaudited and in
thousands)
|
|
|
December
31,
|
March
31,
|
|
2015
|
2015
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
82,402
|
$
107,015
|
Short-term
investments
|
50,808
|
26,109
|
Receivables,
net
|
33,450
|
29,015
|
Inventories
|
35,178
|
36,179
|
Prepaid
expenses and other current assets
|
7,441
|
2,893
|
Net deferred
tax assets, current
|
6,439
|
6,575
|
Current assets
of discontinued operations
|
49
|
2,075
|
Total
current assets
|
215,767
|
209,861
|
Long-term
investments
|
22,147
|
24,181
|
Investment in
unconsolidated affiliate
|
2,739
|
2,683
|
Property and
equipment, net
|
27,514
|
27,316
|
Intangible assets,
net
|
1,363
|
1,491
|
Net deferred tax
assets, non-current
|
3,180
|
3,413
|
Non-current assets of
discontinued operations
|
-
|
12
|
Other
assets
|
604
|
107
|
Total
assets
|
$
273,314
|
$
269,064
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
7,882
|
$
7,277
|
Accrued payroll
and related expenses
|
7,241
|
11,094
|
Accrued
taxes
|
269
|
4,829
|
Current
liabilities of discontinued operations
|
180
|
5,536
|
Other accrued
liabilities
|
8,953
|
9,804
|
Deferred
revenue
|
1,537
|
1,322
|
Warranty
reserve
|
1,272
|
1,423
|
Total
current liabilities
|
27,334
|
41,285
|
Non-current
liabilities:
|
|
|
Deferred
revenue
|
2,516
|
3,219
|
Warranty
reserve
|
1,822
|
1,733
|
Net deferred
tax liabilities
|
310
|
310
|
Notes payable,
less current portion
|
404
|
480
|
Other
non-current liabilities
|
769
|
1,843
|
Total
non-current liabilities
|
5,821
|
7,585
|
Total
liabilities
|
33,155
|
48,870
|
Shareholders'
equity:
|
|
|
Common
stock
|
137,258
|
132,559
|
Retained
earnings
|
102,918
|
87,643
|
Accumulated
other comprehensive loss
|
(17)
|
(8)
|
Total
shareholders' equity
|
240,159
|
220,194
|
Total
liabilities and shareholders' equity
|
$
273,314
|
$
269,064
|
|
|
|
|
Revenues by
Geographic Region and Customer Group
(Unaudited and in
thousands)
|
|
The following table
presents our revenues by source for the three and nine months ended
December 31, 2015 and 2014.
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
December
31,
|
|
December
31,
|
Revenues by
Geographic Region
|
2015
|
2014
|
|
2015
|
2014
|
North
America
|
$
41,109
|
$
45,576
|
|
$
128,596
|
$
121,532
|
International
|
11,767
|
10,475
|
|
33,345
|
29,044
|
Total
revenues
|
$
52,876
|
$
56,051
|
|
$
161,941
|
$
150,576
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
December
31,
|
|
December
31,
|
Revenues by
Customer Group
|
2015
|
2014
|
|
2015
|
2014
|
Medical
Market
|
$
11,002
|
$
11,846
|
|
$
28,317
|
$
26,707
|
Veterinary
Market
|
40,896
|
43,414
|
|
131,084
|
121,454
|
Other
|
978
|
791
|
|
2,540
|
2,415
|
Total
revenues
|
$
52,876
|
$
56,051
|
|
$
161,941
|
$
150,576
|
|
|
|
|
|
|
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SOURCE Abaxis, Inc.