Abaxis Reports Financial Performance for the First Quarter of Fiscal 2009
Quarterly Results: For the fiscal quarter ended June 30, 2008, Abaxisreported revenues of $24.6 million, as compared with revenues of $22.9 millionfor the comparable period last year, an increase of 7 percent. Instrument,reagent disc and hematology reagent revenues increased by an aggregate of $1.9million, or 10 percent over the same period last year. The company reportednet income of $2.8 million, compared to $3.1 million for the same period lastyear. The company's effective tax rate in the first quarter of both fiscal2008 and 2009 was 38 percent. The company reported diluted net income pershare of $0.12 (calculated based on 22,398,000 shares) in the first quarter offiscal 2009, compared to $0.14 per share (calculated based on 22,102,000shares) for the same period last year.
Other Reported Information: Reagent disc and hematology reagent revenuesfor the first quarter of fiscal 2009 were $14.9 million, up 4 percent over the$14.3 million reported in the same period last year. During the quarter, thecompany sold a total of 1.2 million units of medical and veterinary reagentdiscs, an increase of 4 percent compared to a total of 1.1 million units ofmedical and veterinary reagent discs sold during the same period last year.Medical sales in North America, excluding sales to the U.S. government, duringthe first quarter of fiscal 2009 were $4.4 million, an increase of 19 percentover last year's comparable quarter. Total sales in the medical market forthe first quarter of fiscal 2009 were $6.5 million, an increase of 36 percentover last year's comparable quarter. Total sales in the veterinary market forthe first quarter of fiscal 2009 were $16.6 million, substantially the same asin the comparable period last year. Additionally, veterinary reagent discsales for the first quarter of fiscal 2009 were $10.4 million, a decrease of 6percent compared to the same period last year.
The company ended the quarter with $61.6 million in cash, cash equivalentsand investments. As of June 30, 2008, the company had a total of $7.0 millionin short-term investments and $31.6 million in long-term investments, whichlong-term investments consisted of investments in auction rate securities.Unrealized gains and losses, net of related income taxes of $1.3 million, aretemporary and reported as a component of accumulated other comprehensive loss.
Clint Severson, chairman and chief executive officer of Abaxis, commented,"The slow economy did have a negative effect on our veterinary reagent discbusiness. While the comparisons over the first fiscal quarter last year weredifficult due to increased veterinary reagent disc sales because of the petfood scare and the fact we announced a price increase in the last quarter offiscal 2008, clearly the economy has been a drag on our veterinary consumablesales. The good news is that our Vetscan chemistry analyzer sales increasedby 83 units or 25% over last year's comparable quarter. Improving productquality and the fact that a Vetscan chemistry analyzer can make a veterinarypractice more efficient in a difficult economy are two reasons for theincrease."
Mr. Severson continued, "Our medical business continues on a strong growthpath. In conjunction with our distribution partners, we are seeingenthusiastic acceptance of our products on a nationwide basis throughout themedical community. With our veterinary business poised to resume its morehistorical sales track, we look forward to improved operating and financialresults in the coming quarters."
Abaxis has scheduled a conference call to discuss its results at 4:15 p.m.Eastern Time on July 24, 2008. Participants can di
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