Full Press Release Details
INFORMATION: Michael R. Cox
Systems, Inc. Reports Financial Results for First Quarter
LAFAYETTE, Ind., February 16, 2010- Bioanalytical Systems, Inc.
(Nasdaq: BASI) today reported financial results for the first three months of
fiscal 2010, ending December 31, 2009.
in the first quarter of fiscal 2010 decreased 21.0% to $6.4 million compared to
revenue of $8.1 million for the quarter ended December 31, 2008. Service revenue
declined 20.0% and Product revenue declined 23.8% from the comparable prior year
period to $4.8 million and $1.6 million, respectively. The net loss for the
first quarter of fiscal 2010 was $1,488,000, or $0.30 per basic and diluted
share, compared to a net loss of $1,584,000, or $0.32 per basic and diluted
share, for the first quarter of fiscal 2009.
decline in sales was due to both a decrease in new bookings in the prior fiscal
year and delays by sponsors on projects previously booked. We
anticipate that this impact on our sales will continue, but at a slower pace,
through our second quarter of fiscal 2010. We have seen an increase
in order activity in the first three months of fiscal 2010, which we expect will
translate into earned revenues in future quarters of fiscal
2010. Selling, general and administrative costs in the first quarter
of fiscal 2010 declined 33.1% from the prior year period due to the reduction in
work force in January 2009 and cost containment initiatives. We
expect the reduced spending levels to continue and that our efforts to reduce
costs will positively impact the remainder of fiscal 2010 as well.
Company negotiated a Fifth Amendment to the Amended and Restated Credit
Agreement with PNC Bank, successor by merger to National City Bank, on December
31, 2009. This Amendment extended the maturity date of the line of
credit from December 31, 2009 to January 15, 2010. On January 13,
2010, the Company entered into a new revolving line of credit agreement with
Entrepreneur Growth Capital LLC (EGC) to replace the PNC Bank line of
credit. This agreement expires on January 31, 2011.
Cox, Chief Financial Officer, stated, "The first fiscal quarter of 2010 was one
of continued challenges for us. Similar to fiscal 2009, we
experienced lower demand for our products and services, project cancellations
and delays primarily due to the current general economic conditions, increased
competition, and consolidation of several large pharmaceutical and biotechnology
companies. However, we experienced an increase in new bookings in the
first fiscal quarter, which we expect will convert to revenue in future
quarters. For the remainder of fiscal 2010, we remain focused on
maximizing cash flow from operating activities as well as on sales execution,
operational performance and building strategic partnerships with pharmaceutical
and biotechnology companies. With the signing of our new revolving line of
credit agreement with EGC on January 13, 2010 and the impact of the cost
reductions implemented, we project that we will have the liquidity required to
meet our fiscal 2010 operations and debt obligations."
Bioanalytical Systems, Inc.
pharmaceutical development company providing contract research services and
monitoring instruments to the world's leading drug development companies and
medical research organizations. The company focuses on developing innovative
services and products that increase efficiency and reduce the cost of taking a
new drug to market. Visit www.BASInc.com for
release contains forward-looking statements that are subject to risks and
uncertainties including, but not limited to, risks and
changes in the market and demand for our products and
services, the development, marketing and sales of products and
services, changes in
industry standards and regulatory standards, and various market and operating
risks detailed in the company's filings with the Securities
Exchange Commission.
THE PAGE FOR CONSOLIDATED STATEMENTS OF OPERATIONS]
CONSOLIDATED STATEMENTS OF OPERATIONS
thousands, except per share amounts)
| Three Months Ended December 31, | ||||||||
| 2009 | 2008 | |||||||
| Service revenue | $ | 4,811 | $ | 5,987 | ||||
| Product revenue | 1,566 | 2,089 | ||||||
| Total revenue | 6,377 | 8,076 | ||||||
| Cost of service revenue | 4,570 | 5,288 | ||||||
| Cost of product revenue | 611 | 741 | ||||||
| Total cost of revenue | 5,181 | 6,029 | ||||||
| Gross profit | 1,196 | 2,047 | ||||||
| Operating expenses: | ||||||||
| Selling | 785 | 1,005 | ||||||
| Research and development | 171 | 205 | ||||||
| General and administrative | 1,487 | 2,390 | ||||||
| Loss on sale of property and equipment | - | 20 | ||||||
| Total operating expenses | 2,443 | 3,621 | ||||||
| Operating loss | (1,247 | ) | (1,574 | ) | ||||
| Interest income | - | 2 | ||||||
| Interest expense | (241 | ) | (392 | ) | ||||
| Other income | - | 1 | ||||||
| Loss before income taxes | (1,488 | ) | (1,963 | ) | ||||
| Income tax benefit | - | (379 | ) | |||||
| Net loss | $ | (1,488 | ) | $ | (1,584 | ) | ||
| Basic net loss per share | $ | (0.30 | ) | $ | (0.32 | ) | ||
| Diluted net loss per share | $ | (0.30 | ) | $ | (0.32 | ) | ||
| Weighted common shares outstanding: | ||||||||
| Basic | 4,915 | 4,915 | ||||||
| Diluted | 4,915 | 4,915 |