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Abaxis Reports Record Revenues For The Third Quarter Of Fiscal 2013



     Abaxis Reports Record Revenues For The Third Quarter Of Fiscal 2013

PR Newswire

UNION CITY, Calif., Jan. 31, 2013

UNION CITY, Calif., Jan. 31, 2013 /PRNewswire/ -- Abaxis, Inc. (NasdaqGS:
ABAX), a medical products company manufacturing point-of-care blood analysis
systems, today reported financial results for the third fiscal quarter ended
December 31, 2012.

Record quarterly highlights include:

  o Revenues of $49.8 million, up 32% over last year's comparable quarter.
  o North America revenues of $41.8 million, up 31% over last year's
    comparable quarter.
  o Medical market revenues of $9.0 million, up 10% over last year's
    comparable quarter.
  o Veterinary market revenues of $39.9 million, up 40% over last year's
    comparable quarter.
  o Total medical and veterinary instrument revenues of $14.0 million, up 54%
    over last year's comparable quarter.
  o Total medical and veterinary instrument sales of 1,818 units, up 52% over
    last year's comparable quarter.
  o Total medical and veterinary reagent disc sales of $26.7 million, up 31%
    over last year's comparable quarter.
  o Total medical and veterinary reagent disc sales of 2.1 million units, up
    29% over last year's comparable quarter.

Other quarterly highlights include:

  o International revenues of $8.0 million, up 33% over last year's comparable
    quarter.
  o Service revenues from Abaxis Veterinary Reference Laboratories (AVRL) of
    $1.4 million, up 28% over the second quarter of fiscal 2013.
  o Diluted net income per share of $0.22, compared to $0.13 per share for the
    same period last year.

Quarterly Results:  For the fiscal quarter ended December 31, 2012, Abaxis
reported revenues of $49.8 million, as compared with revenues of $37.9 million
for the comparable period last year, an increase of 32 percent.  Revenues from
sales of instruments, which include chemistry analyzers, hematology
instruments, VSpro specialty analyzers and i-STAT analyzers, increased by an
aggregate of $4.9 million or 54 percent, over 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 an aggregate of $6.0 million, or 22 percent, over the same period
last year.  Abaxis reported net income of $5.0 million for the fiscal quarter
ended December 31, 2012, compared to $2.9 million for the same period last
year, an increase of 75 percent.  Abaxis' effective tax rate in the quarter
ended December 31, 2012 was 38 percent, compared to 37 percent for the same
period last year.  Abaxis reported diluted net income per share of $0.22
(calculated based on 22,341,000 shares) for the three-month period ended
December 31, 2012, compared to $0.13 per share (calculated based on 21,990,000
shares) for the same period last year. 

Nine-Month Results:  For the nine-month period ended December 31, 2012, Abaxis
reported revenues of $136.1 million, as compared with revenues of $113.9
million for the comparable period last year, an increase of 19 percent.
 Revenues from instrument sales increased by an aggregate of $10.1 million, or
40 percent, over the same period last year.  Revenues from consumables
increased by an aggregate of $8.7 million, or 10 percent, over the same period
last year.  The company reported net income of $20.8 million, including gain
from the company's litigation settlement in the second quarter of fiscal 2013,
compared to $8.4 million for the same period last year.  The company's
effective tax rate in the nine-month period ended December 31, 2012, was 38
percent, compared to 37 percent for the same period last year.  The company
reported diluted net income per share of $0.93 (calculated based on 22,316,000
shares) for the nine-month period ended December 31, 2012, compared to $0.37
per share (calculated based on 22,579,000 shares) for the same period last
year. 

Other Reported Information:  Total sales in the medical market for the third
quarter of fiscal 2013 were $9.0 million, an increase of 10 percent, compared
to the same period last year.  Medical sales worldwide, excluding sales to the
U.S. government, during the third quarter of fiscal 2013 were $8.6 million, an
increase of 15 percent, compared to the same period last year.  Total sales in
the veterinary market for the third quarter of fiscal 2013 were $39.9 million,
an increase of 40 percent, compared to the same period last year.  Total
medical and veterinary reagent disc sales for the third quarter of fiscal 2013
were $26.7 million, an increase of 31 percent compared to the same period last
year.  Non-cash compensation expense recognized for share-based awards during
the third quarter of fiscal 2013 was $1.8 million, compared to $1.5 million
for the same period last year.  

On December 6, 2012, the company's Board of Directors declared a special cash
dividend of $1.00 per share on the company's outstanding common stock.  The
dividend payment totaling approximately $22.0 million was made on December 28,
2012.

Clint Severson, chairman and chief executive officer of Abaxis, said, "The
financial results of the third quarter of fiscal 2013 were very strong.  We
are steadily executing on our strategic plan to drive sales and net income, as
total revenues increased 32% and net income increased 75%, compared to last
year's third quarter.  Overall we achieved record quarterly reagent disc sales
and instrument sales increased at solid double digit rates compared to third
quarter of fiscal 2012.  We are particularly pleased and encouraged with the
development of our working relationships with our two new distributors, Abbott
Point of Care, Inc. and MWI Veterinary Supply, Inc.  These new distribution
channels give us entry into markets to which we previously had very little
access and expand the universe into which we can embed Abaxis technology. 
While we are still in the early stages of working together, we are developing
the necessary chemistry between our respective organizations that will ensure
long-term success."

"We are also pleased with the progress achieved in the international markets
during the quarter," continued Mr. Severson.  "Sales in both Europe and Asia
continued to improve and grew at a 33% rate compared to last year's third
quarter.  Although macroeconomic conditions throughout the world continue to
be challenging, our dedication to building these markets during these most
difficult times is beginning to bear real fruit.  All in all, we had a very
solid quarter and we look to finish the year on a strong note in both our
veterinary and medical markets."

Conference Call

Abaxis has scheduled a conference call to discuss its results at 4:15 p.m.
Eastern Time on Thursday, January 31, 2013.  Participants can dial (877)
317-6789 or (412) 317-6789 to access the conference call, or can listen via a
live Internet web cast, 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 10024107, through
February 7, 2013.  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 develop, manufactures, markets and sells portable blood analysis
systems for use in any veterinary or human patient-care setting to provide
clinicians with rapid blood constituent measurements.  The system consists of
a compact, 5.1 kilogram (11.2 pounds), portable analyzer and a series of
single-use plastic discs, called reagent discs that contain all the chemicals
required to perform a panel of up to 13 tests on veterinary patients and 14
tests on human patients.  The system can be operated with minimal training and
performs multiple routine tests on whole blood, serum or plasma samples.  The
system provides test results in less than 12 minutes with the precision and
accuracy equivalent to a clinical laboratory analyzer.  The veterinary
business also provides to the animal health and research market a line of
hematology instruments for point-of-care complete blood counts (CBC), a
specialty instrument to screen for and detect clotting disorders and to
measure equine fibrinogen levels, a handheld instrument for the rapid
assessment of certain critical care tests and rapid point-of-care tests for
Heartworm infections, Parvovirus, Giardia and Lyme disease.  Abaxis, through
its AVRL division, provides routine laboratory testing as well as specialty
testing for veterinarians nationwide.

Use of Financial Measures

To supplement the financial statements presented in accordance with United
States generally accepted accounting principles (GAAP), Abaxis uses operating
income per share, a non-GAAP financial measure. The presentation of this
financial information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP. For more information on this non-GAAP
financial measure, refer to the table captioned "Operating Income Per Share"
included at the end of this release.  Abaxis defines operating income per
share as operating income divided by the weighted average outstanding shares.
 Management uses this measure in comparing Abaxis' operating results with
historical performance and believes it provides meaningful and comparable
information to management and investors to assist in their review of Abaxis'
performance relative to prior periods and its competitors.

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' cash position, financial resources
and potential for future growth, market acceptance and penetration of new or
planned product offerings, and future recurring revenues 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 losses or
system failures with respect to Abaxis' facilities or manufacturing
operations, fluctuations in quarterly operating results, dependence on sole
suppliers, the market acceptance of Abaxis' products and services, the
continuing development of its products, required United States Food and Drug
Administration clearance and other government approvals, risks associated with
manufacturing and distributing its products on a commercial scale free of
defects, 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 and risks
related to condition of the United States economy.  Readers should also refer
to the section entitled "Risk Factors" in Abaxis' Annual Report on Form 10-K,
its most recent Quarterly Report on Form 10-Q and Abaxis' other periodic
reports 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
(In thousands, except per share data)
(Unaudited)
                           Three Months Ended      Nine Months Ended
                           December 31,            December 31,
                           2012        2011        2012          2011
Revenues                   $           $           $             $        
                            49,802      37,850      136,074       113,878
Cost of revenues           23,726      17,372      64,026        52,156
Gross profit               26,076      20,478      72,048        61,722
Operating expenses:
   Research and            3,802       2,634       10,348        9,096
development 
   Sales and marketing     12,373      9,927       35,647        28,414
   General and             2,210       3,280       10,153        11,194
administrative
   Gain from legal         -           -           (17,250)      -
settlement
Total operating expenses   18,385      15,841      38,898        48,704
Income from operations     7,691       4,637       33,150        13,018
Interest and other income  293         (91)        318           259
(expense), net
Income before income tax   7,984       4,546       33,468        13,277
provision
Income tax provision       2,996       1,696       12,707        4,892
Net income                 $           $           $             $            
                              4,988       2,850     20,761        8,385
Net income per share:
  Basic net income per     $           $           $             $            
share                           0.23        0.13      0.95          0.38
  Diluted net income per   $           $           $             $            
share                           0.22        0.13      0.93          0.37
Shares used in the
calculation of net income
per share:
  Weighted average common  21,968      21,672      21,902        22,213
shares outstanding - basic
  Weighted average common
shares outstanding -       22,341      21,990      22,316        22,579
diluted

ABAXIS, INC.
Condensed Consolidated Balance Sheets
(Unaudited and in thousands)
                                     December 31,         March 31,
                                     2012                 2012
Current assets:
 Cash and cash equivalents           $             47,427 $             45,843
 Short-term investments              22,644               21,689
 Receivables, net                    36,094               30,694
 Inventories                         25,069               19,597
 Prepaid expenses and other current  7,067                5,423
assets
 Net deferred tax assets, current    4,356                4,151
   Total current assets              142,657              127,397
Long-term investments                21,712               23,442
Investment in unconsolidated         2,613                2,626
affiliate
Property and equipment, net          25,512               24,296
Intangible assets, net               3,515                3,990
Other assets                         97                   85
   Total assets                      $           196,106  $           181,836
Current liabilities:
 Accounts payable                    $             11,536 $              
                                                          6,381
 Accrued payroll and related         8,380                6,336
expenses
 Accrued taxes                       229                  266
 Other accrued liabilities           2,314                1,991
 Deferred revenue                    1,388                1,212
 Warranty reserve                    993                  1,245
   Total current liabilities         24,840               17,431
Non-current liabilities:
 Deferred rent                       712                  641
 Net deferred tax liabilities        159                  199
 Deferred revenue                    3,517                2,396
 Warranty reserve                    473                  601
 Notes payable, less current portion 707                  783
   Total non-current liabilities     5,568                4,620
   Total liabilities                 30,408               22,051
Shareholders' equity:
 Common stock                        117,217              110,063
 Retained earnings                   48,435               49,697
 Accumulated other comprehensive     46                   25
income
   Total shareholders' equity        165,698              159,785
   Total liabilities and             $           196,106  $           181,836
shareholders' equity

Operating Income Per Share
(In thousands, except per
share data)
                               Three Months Ended      Nine Months Ended
                               December 31,            December 31,
                               2012        2011        2012        2011
Shares used in the calculation
of operating income per share:
  Weighted average common      21,968      21,672      21,902      22,213
shares outstanding - basic
  Weighted average common      22,341      21,990      22,316      22,579
shares outstanding - diluted
Operating income per share -   $           $           $           $          
basic                           0.35        0.21        1.51        0.59
Operating income per share -   $           $           $           $          
diluted                         0.34        0.21        1.49        0.58
Revenues by Geographic Region
(In thousands)
                               Three Months Ended      Nine Months Ended
                               December 31,            December 31,
                               2012        2011        2012        2011
North America                  $           $           $           $      
                                41,797      31,847      110,876     93,540
International                  8,005       6,003       25,198      20,338
Total revenues                 $           $           $           $    
                                49,802      37,850      136,074     113,878
Revenues by Customer Group
(In thousands)
                               Three Months Ended      Nine Months Ended
                               December 31,            December 31,
                               2012        2011        2012        2011
Medical Market                 $           $           $           $      
                                8,977       8,147       25,267      22,636
Veterinary Market              39,865      28,467      107,299     87,684
Other                          960         1,236       3,508       3,558
Total revenues                 $           $           $           $    
                                49,802      37,850      136,074     113,878

 

 

SOURCE Abaxis, Inc.

Website: http://www.abaxis.com
Contact: Abaxis, Inc., Clint Severson, Chief Executive Officer,
+1-510-675-6500, or Lytham Partners, LLC, Joe Dorame, Robert Blum and Joe
Diaz, +1-602-889-9700
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