Biosensors Reports Financial Results for the First Quarter of Fiscal Year 2014

Biosensors Reports Financial Results for the First Quarter of Fiscal Year 2014

PR Newswire

SINGAPORE, Aug. 7, 2013

SINGAPORE, Aug. 7, 2013 /PRNewswire/ -- Biosensors International Group, Ltd.
("Biosensors" or the "Company", Bloomberg: BIG SP; Reuters: BIOS.SI; SGX:
B20), a developer, manufacturer and marketer of innovative medical devices,
today announced financial results for its fiscal first quarter ended 30 June
2013 (Q1 FY14).

Quarter Highlights and Other Recent Updates:

  oTotal revenue was US$76.7 million, compared to US$86.3 million for the
    first quarter of Fiscal Year 2013 (Q1 FY13). Channel inventory adjustment
    in China and lower royalty and licensing revenues contributed to the
    year-over-year decline.
  oInitiated inventory drawdown in China sales channels in light of ongoing
    and upcoming drug-eluting stent (DES) tender activities, aimed at
    strengthening the Company's position for future sales growth.
  oContinued double-digit year-over-year growth in DES sales in EMEA and APAC
    regions.
  oAchieved initial success in collaboration with Terumo Corporation
    ("Terumo") co-promoting Nobori DES ("Nobori") in Japan.
  oConsolidated the recently-acquired business of Spectrum Dynamics ("SD")
    into the Company's financial results. SD also recently received regulatory
    approval for its D-SPECT Cardiac Imaging System in Japan.

"In the first quarter, our financial performance was impacted by a disruption
in DES sales and lower royalty revenues. We initiated an inventory drawdown in
China in light of ongoing and upcoming tender activities. Although this
initiative has resulted in additional pressure on our first quarter DES sales,
we expect this adjustment to help us better position ourselves in the China
DES market and grow our sales in the near future. In other major market
regions such as EMEA and APAC, we achieved double-digit year-over-year sales
growth, thanks to our superior product and investments in key symposiums such
as Euro PCR," said Biosensors' CEO Dr. Jack Wang. "The integration process of
our recently acquired business, SD, is well on track. We are excited about the
recent Japanese regulatory approval of its D-SPECT system and we remain
confident of our ability to unlock the potential of this business."

For Q1 FY14, Biosensors reported total revenue of US$76.7 million, an 11%
decline from US$86.3 million in Q1 FY13, which resulted from both lower
product revenue and lower licensing and royalty revenue. Product revenue of
US$65.0 million represented a 6% year-on-year decline over US$69.0 million in
Q1 FY13, which was the result of a 7% reduction in the Company's
Interventional Cardiology ("IVP") revenue partially offset by a slight
increase in the Company's critical care products ("CCP") revenue and the
consolidation of the Company's newly-acquired Cardiac Diagnostics business.

Licensing and royalty revenue for Q1 FY14 was US$11.6 million, down US$5.6
million or 33% from US$17.3 million in Q1 FY13.

Gross margin on total product sales was 75% for the quarter, down from 81% in
Q1 FY13, mainly due to lower gross margin for the Company's IVP product line
as a result of our distribution activities in Japan for the Nobori stents,
coupled with the consolidation of the Company's newly-acquired Cardiac
Diagnostic business which has a lower gross margin.

Total operating expense as a percentage of product revenue for the quarter was
64%, compared to 57% in Q1 FY13.

In detail, the quarter's sales and marketing ("S&M") expense was US$26.6
million; general and administrative ("G&A") expense was US$9.3 million;
research and development ("R&D") expense, which included costs for new product
development and testing, clinical trials, patent registration and regulatory
approval, was US$6.1 million.

Net profit for Q1 FY14 was US$12.1 million or basic earnings per share ("basic
EPS") of 0.70 US cents and diluted earnings per share ("diluted EPS") of 0.69
US cents, with no exceptional items for this quarter. This compares to a net
profit of US$28.3 million or basic EPS of 1.65 US cents and diluted EPS of
1.62 US cents, for Q1 FY13 after excluding the exceptional items of fair value
adjustments for warrants and provisions for restructuring expenses. Including
exceptional items, net profit for Q1 FY13 was US$32.6 million or basic EPS of
1.90 US cents and diluted EPS of 1.86 US cents.

Financial Guidance for FY14

For the fiscal year ending 31 March 2014 (FY14), management maintains its
previous guidance and continues to expect total revenue to grow by around 15%
over FY13. This guidance is driven primarily by continued product revenue
growth in the EMEA and APAC regions, as well as the expectation that China
sales will recover following the inventory adjustment in Q1 FY14. New revenues
are also expected from the commercialization of various new products and the
newly acquired business of SD. The Company expects its aggregate royalty
income to improve over its Q1 FY14 results.

The Company's practice is to provide guidance on a full year basis only. This
forecast reflects Biosensors' current and preliminary views, which are subject
to change. It also excludes the potential impact from foreign exchange
fluctuations, or any exceptional events and unforeseen circumstances that may
occur.

"Looking ahead towards the rest of FY14, we maintain our full-year financial
guidance and remain committed to achieving our target. Based on our sales
strategy in China, we anticipate our China DES sales to improve in the
upcoming quarters. We also expect other key regions such as EMEA and APAC to
continue to deliver solid results. Considering the strong clinical data
profile of our major products, along with our sales and marketing initiatives,
we remain confident about our competitive position in the DES market going
forward," said Dr. Wang. "We have seen good momentum in our co-promotion
partnership with Terumo in Japan. We are hopeful that this collaboration could
lead to more stable sales of Nobori in later quarters. On the M&A front, we
continue to make good progress in our discussions with several other potential
targets. We strongly believe we have the right leadership and resources in
place to help us execute our long-term strategies. We remain committed to
diversifying our business in order to maximize Biosensors' growth potential."

About Biosensors International Group, Ltd

Biosensors International Group, Ltd. develops, manufactures and markets
innovative medical devices, aiming to improve patients' lives through
pioneering medical technology that pushes forward the boundaries of
innovation. Founded in 1990, we were listed on the Mainboard of the Singapore
Stock Exchange in 2005.

The Group currently operates through three business units ("BU"):
cardiovascular BU, which includes the BioMatrix™ family of drug-eluting stents
and the licensing of its proprietary drug-eluting stent technology; cardiac
diagnostic BU, which includes the newly acquired assets of Spectrum Dynamics,
offering advanced medical imaging and clinical solutions to help
interventional cardiologists determine the most appropriate treatment for
patients; and peripheral intervention BU, which includes drug-eluting balloons
for the treatment of patients with peripheral arterial disease.

The Group has operations worldwide and is headquartered in Singapore.

For more information, please visit www.biosensors.com.

Forward-Looking Statements

Certain statements herein include forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally can be identified by the use of
forward-looking terminology, such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," "project" or "continue" or the negative
thereof or other similar words. All forward looking statements involve risks
and uncertainties, including, but not limited to, customer acceptance and
market share gains, competition from companies that have greater financial
resources; introduction of new products into the marketplace by competitors;
successful product development; dependence on significant customers; the
ability to recruit and retain quality employees as Biosensors grows; and
economic and political conditions globally. Actual results may differ
materially from those discussed in, or implied by, the forward-looking
statements. The forward-looking statements speak only as of the date of this
release and Biosensors assumes no duty to update them to reflect new, changing
or unanticipated events or circumstances.

Media/Investor Relations Contact
Wong Teck Yenn
Director, Investor Relations
Tel: (65)-6213-5777
Email: ir@biosensors.com

SOURCE Biosensors International Group, Ltd.

Website: http://www.biosensors.com
 
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