ABAXIS Reports First Profitable Year

Apr 26, 2001, 01:00 ET from ABAXIS, Inc.

    UNION CITY, Calif., April 26 /PRNewswire/ -- ABAXIS, Inc. (Nasdaq:   ABAX),
 a medical products company manufacturing point-of-care blood analysis systems,
 today reported revenues for its fourth fiscal quarter and the twelve-months
 ended March 31, 2001.
     Total revenues for the twelve-month period ended March 31, 2001, increased
 27 percent to $29.5 million compared with revenues of $23.2 million for the
 same period last year. Revenues for the twelve-month period in the U.S.
 increased by 32 percent. The Company reported net income of $188,000 compared
 to a net loss of $577,000 for the same period last year. Net loss per share
 for the twelve-month period was $0.09 (calculated based on 15,994,000 shares)
 compared to net loss per share of $0.05 (calculated based on
 14,296,000 shares) for the same period last year.
     The Company incurred one-time charges of approximately $1.0 million for
 the closure of the old manufacturing facility, the move to the new facility
 and the shutdown of production for approximately six weeks. In addition, the
 Company recorded a non-recurring non-cash dividend of $1,418,000 related to
 the valuation of the warrants, exercisable at $7.00 per share, that were
 issued in conjunction with the issuance of the Company's Series D Preferred
 Stock in October 2000. The Company also recorded dividends of
 $230,000 pursuant to the terms of the Series D Preferred Stock. If the Company
 had not incurred these one-time charges and dividends, basic pro forma net
 income per share would have been $0.08 for the fiscal year.
     For the fourth fiscal quarter, total revenues increased to $7.5 million
 compared with revenues of $7.2 million for the same quarter last year. For the
 quarter, revenues in the U.S. increased by 11 percent while revenues in Japan
 decreased by 73 percent. The Company reported a net loss of $154,000, compared
 to net income of $375,000 for the same quarter last year. The reduction in net
 income is primarily due to a decrease in the gross margin attributable to
 increased overhead costs, incurred with the Company's relocation to a larger
 facility with increased manufacturing capacity.
     During the quarter, the Company shipped 322,000 reagent discs compared to
 283,000 in the fourth quarter last year, an increase of 14 percent. For the
 twelve-month period, the Company shipped 1,313,000 reagent discs, an increase
 of 21 percent compared to the 1,084,000 discs shipped during the comparable
 twelve-month period last year. For the quarter, the Company sold a total of
 518 new Piccolo, VetScan and VetScan HMT systems compared to 592 for the
 fourth quarter of fiscal 2000. This decrease in instrument sales is due to a
 decrease of shipments to Japan. Although shipments of blood analyzers for the
 quarter decreased, shipments for the year continued to grow. For the
 twelve-month period, the Company shipped 1,926 blood analyzers, an increase of
 20 percent compared to 1,602 blood analyzers shipped during the comparable
 twelve-month period last year.
     "This was a milestone year for ABAXIS, as we achieved the first profitable
 year in the history of the Company," commented Clint Severson, chairman,
 president and chief executive officer of ABAXIS. "Additionally, we are pleased
 with the achievements in the fourth quarter, and are especially proud of the
 performance of the domestic sales and marketing group who achieved record
 sales for the quarter and more than 30 percent growth for the year. In
 addition, the ABAXIS team completed the development of three new test methods
 and launched three new Vetscan rotors. For the year, the employees of ABAXIS
 had to manage all the distractions and expenses associated with moving a
 business as large and as complex as ours and prepare for the Company's entry
 into the human market during 2002."
     "Looking forward to next year we will be adding more sales and marketing
 recourses and entering new markets. With the completion of our new factory we
 will have the capacity to meet both the needs of the market and our aggressive
 goals. We look forward to the opportunities that lie ahead of ABAXIS in 2002."
     ABAXIS will hold a conference call to discuss these results Thursday,
 April 26, 2001 at 9:00 a.m. Pacific time, 12:00 p.m. Eastern time. The number
 to join the call is 800-289-0569 or 913-981-5542, or the call can be accessed
 via the Internet at http://www.vcall.com/NASApp/Vcall/EventPage?ID=73700. A
 replay of the call is available by visiting www.rcgonline.com, or Vcall's Web
 site for the next 30 days or by calling 719-457-0820, access code 487451,
 through May 3, 2001.
     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 discs,
 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 includes statements that constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995 (the "Reform Act"). 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," or  "anticipates," and do not reflect
 historical facts. Specific forward-looking statements contained in this press
 release include, but are 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, risks associated with entering the human
 diagnostic market on a larger scale, problems caused by electricity-related
 issues in California (including, but not limited to, utility costs and
 "brownouts" or "blackouts" which may cause production delays), risks involved
 in carrying of inventory, risks from unexpected problems or delays in the
 Company's new manufacturing facility, risks associated with the ability to
 attract and retain competent sales personnel, 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. Forward-looking statements speak only as of the date the statement
 was made. ABAXIS does not undertake and specifically disclaims any obligation
 to update any forward-looking statements.
 
                                   Abaxis, Inc.
                          Summary Financial Information
                      (in thousands, except per share data)
 
                            Three Months Ended          Twelve Months Ended
                          March 31,      March 31,     March 31,    March 31,
                             2001          2000          2001         2000
                                 (Unaudited)                (Unaudited)
 
     Statements of
       Operations Data:
 
     Net revenues            $7,476        $7,249      $29,501       $23,230
 
     Costs and operating
      expenses:
       Cost of revenue        4,425         3,506       16,288        12,549
       Selling, general
        and administrative    2,435         2,419        9,641         7,765
       Research and
        development             849           916        3,458         3,534
     Total costs and
      operating expenses      7,709         6,841       29,387        23,848
 
     Income (loss) from
      operations               (233)          408          114          (618)
     Other income
      (expense), net             79           (33)          74            41
     Net income (loss)        $(154)         $375         $188         $(577)
     Dividends                 (115)           --       (1,648)         (151)
     Net income (loss)
      attributable to
      common shareholders     $(269)         $375      $(1,460)        $(728)
     Basic and diluted
      income (loss)
      per share              $(0.02)        $0.02       $(0.09)       $(0.05)
     Average number of
      common shares
      outstanding used
      for basic earnings
      per share              16,061        15,285       15,994        14,296
     Average number of
      common and common
      equivalent shares
      outstanding used
      for diluted
      earnings per share     16,061        16,827       15,994        14,296
 
     (A) Net loss attributable to common shareholders used in the computation
         of loss per share for the three and twelve months ended March 31, 2001
         were $(269,000) and $(1,460,000), respectively, which includes a one
         time impact in the twelve month period.Net income (loss) attributable
         to common shareholders used in the computation of loss per share for
         the three and twelve months ended March 31, 2000 were $375,000 and
         $(728,000), respectively.
 
 
     Balance Sheet Data:
                                              March 31, 2001    March 31, 2000
                                               (unaudited)              (A)
     Cash and cash equivalents                    $2,012              $2,049
     Total current assets                         16,126              10,002
     Property, plant and equipment, net            9,455               3,941
     Other non-current assets                        420                 155
     Total assets                                 26,001              14,098
     Total liabilities                            10,506               6,861
     Total shareholders' equity                   15,495               7,237
     Total liabilities and shareholders' equity   26,001              14,098
 
     (A) Derived from the Company's audited financial statements as of
         March 31, 2000.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X02173845
 
 

SOURCE ABAXIS, Inc.
    UNION CITY, Calif., April 26 /PRNewswire/ -- ABAXIS, Inc. (Nasdaq:   ABAX),
 a medical products company manufacturing point-of-care blood analysis systems,
 today reported revenues for its fourth fiscal quarter and the twelve-months
 ended March 31, 2001.
     Total revenues for the twelve-month period ended March 31, 2001, increased
 27 percent to $29.5 million compared with revenues of $23.2 million for the
 same period last year. Revenues for the twelve-month period in the U.S.
 increased by 32 percent. The Company reported net income of $188,000 compared
 to a net loss of $577,000 for the same period last year. Net loss per share
 for the twelve-month period was $0.09 (calculated based on 15,994,000 shares)
 compared to net loss per share of $0.05 (calculated based on
 14,296,000 shares) for the same period last year.
     The Company incurred one-time charges of approximately $1.0 million for
 the closure of the old manufacturing facility, the move to the new facility
 and the shutdown of production for approximately six weeks. In addition, the
 Company recorded a non-recurring non-cash dividend of $1,418,000 related to
 the valuation of the warrants, exercisable at $7.00 per share, that were
 issued in conjunction with the issuance of the Company's Series D Preferred
 Stock in October 2000. The Company also recorded dividends of
 $230,000 pursuant to the terms of the Series D Preferred Stock. If the Company
 had not incurred these one-time charges and dividends, basic pro forma net
 income per share would have been $0.08 for the fiscal year.
     For the fourth fiscal quarter, total revenues increased to $7.5 million
 compared with revenues of $7.2 million for the same quarter last year. For the
 quarter, revenues in the U.S. increased by 11 percent while revenues in Japan
 decreased by 73 percent. The Company reported a net loss of $154,000, compared
 to net income of $375,000 for the same quarter last year. The reduction in net
 income is primarily due to a decrease in the gross margin attributable to
 increased overhead costs, incurred with the Company's relocation to a larger
 facility with increased manufacturing capacity.
     During the quarter, the Company shipped 322,000 reagent discs compared to
 283,000 in the fourth quarter last year, an increase of 14 percent. For the
 twelve-month period, the Company shipped 1,313,000 reagent discs, an increase
 of 21 percent compared to the 1,084,000 discs shipped during the comparable
 twelve-month period last year. For the quarter, the Company sold a total of
 518 new Piccolo, VetScan and VetScan HMT systems compared to 592 for the
 fourth quarter of fiscal 2000. This decrease in instrument sales is due to a
 decrease of shipments to Japan. Although shipments of blood analyzers for the
 quarter decreased, shipments for the year continued to grow. For the
 twelve-month period, the Company shipped 1,926 blood analyzers, an increase of
 20 percent compared to 1,602 blood analyzers shipped during the comparable
 twelve-month period last year.
     "This was a milestone year for ABAXIS, as we achieved the first profitable
 year in the history of the Company," commented Clint Severson, chairman,
 president and chief executive officer of ABAXIS. "Additionally, we are pleased
 with the achievements in the fourth quarter, and are especially proud of the
 performance of the domestic sales and marketing group who achieved record
 sales for the quarter and more than 30 percent growth for the year. In
 addition, the ABAXIS team completed the development of three new test methods
 and launched three new Vetscan rotors. For the year, the employees of ABAXIS
 had to manage all the distractions and expenses associated with moving a
 business as large and as complex as ours and prepare for the Company's entry
 into the human market during 2002."
     "Looking forward to next year we will be adding more sales and marketing
 recourses and entering new markets. With the completion of our new factory we
 will have the capacity to meet both the needs of the market and our aggressive
 goals. We look forward to the opportunities that lie ahead of ABAXIS in 2002."
     ABAXIS will hold a conference call to discuss these results Thursday,
 April 26, 2001 at 9:00 a.m. Pacific time, 12:00 p.m. Eastern time. The number
 to join the call is 800-289-0569 or 913-981-5542, or the call can be accessed
 via the Internet at http://www.vcall.com/NASApp/Vcall/EventPage?ID=73700. A
 replay of the call is available by visiting www.rcgonline.com, or Vcall's Web
 site for the next 30 days or by calling 719-457-0820, access code 487451,
 through May 3, 2001.
     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 discs,
 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 includes statements that constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995 (the "Reform Act"). 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," or  "anticipates," and do not reflect
 historical facts. Specific forward-looking statements contained in this press
 release include, but are 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, risks associated with entering the human
 diagnostic market on a larger scale, problems caused by electricity-related
 issues in California (including, but not limited to, utility costs and
 "brownouts" or "blackouts" which may cause production delays), risks involved
 in carrying of inventory, risks from unexpected problems or delays in the
 Company's new manufacturing facility, risks associated with the ability to
 attract and retain competent sales personnel, 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. Forward-looking statements speak only as of the date the statement
 was made. ABAXIS does not undertake and specifically disclaims any obligation
 to update any forward-looking statements.
 
                                   Abaxis, Inc.
                          Summary Financial Information
                      (in thousands, except per share data)
 
                            Three Months Ended          Twelve Months Ended
                          March 31,      March 31,     March 31,    March 31,
                             2001          2000          2001         2000
                                 (Unaudited)                (Unaudited)
 
     Statements of
       Operations Data:
 
     Net revenues            $7,476        $7,249      $29,501       $23,230
 
     Costs and operating
      expenses:
       Cost of revenue        4,425         3,506       16,288        12,549
       Selling, general
        and administrative    2,435         2,419        9,641         7,765
       Research and
        development             849           916        3,458         3,534
     Total costs and
      operating expenses      7,709         6,841       29,387        23,848
 
     Income (loss) from
      operations               (233)          408          114          (618)
     Other income
      (expense), net             79           (33)          74            41
     Net income (loss)        $(154)         $375         $188         $(577)
     Dividends                 (115)           --       (1,648)         (151)
     Net income (loss)
      attributable to
      common shareholders     $(269)         $375      $(1,460)        $(728)
     Basic and diluted
      income (loss)
      per share              $(0.02)        $0.02       $(0.09)       $(0.05)
     Average number of
      common shares
      outstanding used
      for basic earnings
      per share              16,061        15,285       15,994        14,296
     Average number of
      common and common
      equivalent shares
      outstanding used
      for diluted
      earnings per share     16,061        16,827       15,994        14,296
 
     (A) Net loss attributable to common shareholders used in the computation
         of loss per share for the three and twelve months ended March 31, 2001
         were $(269,000) and $(1,460,000), respectively, which includes a one
         time impact in the twelve month period.Net income (loss) attributable
         to common shareholders used in the computation of loss per share for
         the three and twelve months ended March 31, 2000 were $375,000 and
         $(728,000), respectively.
 
 
     Balance Sheet Data:
                                              March 31, 2001    March 31, 2000
                                               (unaudited)              (A)
     Cash and cash equivalents                    $2,012              $2,049
     Total current assets                         16,126              10,002
     Property, plant and equipment, net            9,455               3,941
     Other non-current assets                        420                 155
     Total assets                                 26,001              14,098
     Total liabilities                            10,506               6,861
     Total shareholders' equity                   15,495               7,237
     Total liabilities and shareholders' equity   26,001              14,098
 
     (A) Derived from the Company's audited financial statements as of
         March 31, 2000.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X02173845
 
 SOURCE  ABAXIS, Inc.