Full Press Release Details
Bioanalytical Systems, Inc. Reports Fourth Quarter and Year-End 2005 Financial Results
Ind., December 22, 2005 Bioanalytical Systems, Inc. (Nasdaq: BASI) today reported financial results for its
fourth quarter and fiscal year ended September 30, 2005. Revenue for the
quarter ended September 30, 2005 increased 35% to $12.3 million compared
to $9.1 million for the quarter ended September 30, 2004. Net income for
the fourth quarter of fiscal 2005 was $142,000, or $0.03 per basic and diluted
share, compared to a net loss of $205,000, or $0.04 loss per basic and diluted
share for the fourth quarter of fiscal 2004. Increased sales efforts resulted
in better capacity utilization and a 60% increase in service revenue in the
fourth quarter of the current year over the prior year. Product revenues
declined 6% from the same quarter in fiscal 2004.
fiscal year ended September 30, 2005 increased 14% to $42.4 million from
$37.2 million for the fiscal year ended September 30, 2004. Net income for
the fiscal year ended September 30, 2005 was $5,000, or $0.00 per basic
and diluted share, compared to a net loss of $203,000, or $0.04 per basic and
diluted share, for the fiscal year ended September 30, 2004. Net income
for the current fiscal year includes the effect of a tax provision which was
nearly equal to pre-tax earnings as a result of foreign losses not being
available to offset domestic earnings compared to an income tax benefit of
$404,000 in fiscal 2004 ($0.08 per share). Both fiscal 2005 and 2004 included
the results of the two acquisitions completed in 2003 for all of the comparable
periods. Service revenue for fiscal 2005
increased 32% compared to the prior year due to continuing strong demand for
the Company s analytical services, a continuing improvement in toxicology
services sales, as well as strong sales growth in the clinical research unit. Product revenues for the current fiscal year declined by 22% from
for the fourth fiscal quarter ended September 30, 2005 was $8.1 million,
or 66% of revenue, compared to $6.6 million, or 73% of revenue, for the fourth
quarter ended September 30, 2004. Cost of revenue for the year ended September 30,
2005 was $27.0 million, or 64% of revenue, compared to $25.6 million, or 69% of
revenue, for the year ended September 30, 2004. The improvement of the
margins for both the quarter and full year of fiscal 2005 reflect the fact that
a significant portion of the Company s costs in its services segment are
relatively fixed, which results in increased margin percentages when there is
strong growth in that segment.
Kissinger, Chairman and CEO commented, The past fiscal year was one where we
saw the results of strong efforts by our people in completing the integration
of our 2003 acquisitions. Our laboratory in Oregon had very solid operating
results, our clinic in Baltimore increased revenues by 30% and is nearing break-even,
and our toxicology facility made a positive contribution after several years of
hard work to broaden its market. Our UK operations suffered from poor sales and
marketing, a situation we are currently addressing, and after a very good year
in Culex sales last year, we experienced softness this year. We are addressing that issue
in the current year through a refocused sales effort.
Conference Call Information
BASi will host a live conference call and
listen-only Webcast to discuss its fourth quarter and fiscal year 2005 results
at 9:00 a.m. EST tomorrow, Friday, December 23, 2005. To participate
in the conference call, please
877-407-9205 (domestic) or 1-201-689-8054 (international). Also, a live Webcast
of the conference call will be available at www.bioanalytical.com.
unable to participate there will be a replay available from Friday, December 23
at 11:00 a.m. EST, through 11:59 p.m. EST on Sunday, December 25,
2005, by dialing 877-660-6853 (domestic) or 1-201-612-7415 (international) and
entering the account number 286 and conference ID number 183342 for both
telephone numbers. In addition, a replay of the Webcast will be available at
Bioanalytical Systems, Inc.
BASi is a 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 http://www.bioanalytical.com for more
This release contains forward-looking statements
that are subject to risks and uncertainties including, but not limited to,
risks and uncertainties related to the development of products and services,
changes in technology, industry standards and regulatory standards, and various
market and operating risks detailed in the company s filings with the
Securities and Exchange Commission.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended September 30, | Year Ended September 30, | ||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||
| Service revenue | $ | 9,078,000 | $ | 5,658,000 | $ | 32,988,000 | $ | 24,928,000 | |||||
| Product revenue | 3,218,000 | 3,436,000 | 9,444,000 | 12,224,000 | |||||||||
| Total revenue | 12,296,000 | 9,094,000 | 42,432,000 | 37,152,000 | |||||||||
| Cost of service revenue | 7,043,000 | 5,854,000 | 23,613,000 | 21,348,000 | |||||||||
| Cost of product revenue | 1,064,000 | 768,000 | 3,416,000 | 4,270,000 | |||||||||
| Total cost of revenue | 8,107,000 | 6,622,000 | 27,029,000 | 25,618,000 | |||||||||
| Gross profit | 4,189,000 | 2,472,000 | 15,403,000 | 11,534,000 | |||||||||
| Operating expenses: | |||||||||||||
| Selling | 673,000 | 740,000 | 2,592,000 | 2,703,000 | |||||||||
| Research and development | 673,000 | 299,000 | 1,326,000 | 1,100,000 | |||||||||
| General and administrative | 2,382,000 | 1,792,000 | 10,163,000 | 7,477,000 | |||||||||
| Total operating expenses | 3,728,000 | 2,831,000 | 14,081,000 | 11,280,000 | |||||||||
| Operating income (loss) | 461,000 | (359,000 | ) | 1,322,000 | 254,000 | ||||||||
| Other income (expense) | (55,000 | ) | 64,000 | 1,000 | 103,000 | ||||||||
| Interest income | 12,000 | 3,000 | 19,000 | 8,000 | |||||||||
| Interest expense | (206,000 | ) | (222,000 | ) | (988,000 | ) | (943,000 | ) | |||||
| Gain (loss) on sale of property and equipment | (19,000 | ) | 21,000 | (29,000 | ) | ||||||||
| (249,000 | ) | (174,000 | ) | (947,000 | ) | (861,000 | ) | ||||||
| Income (loss) before income taxes | 212,000 | (533,000 | ) | 375,000 | (607,000 | ) | |||||||
| Income taxes/(benefit) | 70,000 | (328,000 | ) | 370,000 | (404,000 | ) | |||||||
| Net income (loss) | $ | 142,000 | $ | (205,000 | ) | $ | 5,000 | $ | (203,000 | ) | |||
| Net income (loss) per share: | |||||||||||||
| Basic | $ | 0.03 | $ | (0.04 | ) | $ | $ | (0.04 | ) | ||||
| Diluted | $ | 0.03 | $ | (0.04 | ) | $ | $ | (0.04 | ) | ||||
| Weighted average common and common equivalent shares outstanding : | |||||||||||||
| Basic | 4,871,127 | 4,869,502 | 4,870,370 | 4,860,095 | |||||||||
| Diluted | 4,964,775 | 4,869,502 | 4,946,674 | 4,860,095 |