Full Press Release Details
FOR MORE INFORMATION: Michael R. Cox
Bioanalytical Systems, Inc. Reports Fourth Quarter and Year-End 2006
WEST LAFAYETTE, Ind.,
December 21, 2006 Bioanalytical Systems, Inc. (Nasdaq: BASI) today
reported financial results for its fourth quarter and fiscal year ended
September 30, 2006. Revenue for the quarter ended September 30, 2006 decreased
13% to $10.7 million compared to $12.3 million for the quarter ended September
30, 2005. Net loss for the fourth quarter of fiscal 2006 was $676,000, or $0.14
loss per basic and diluted share, compared to net income of $142,000, or $0.03
income per basic and diluted share for the fourth quarter of fiscal 2005. The
decrease in revenue in fiscal 2006 was a result of the loss of a significant
customer in the Company s Baltimore clinic, and a decline in installations
of the Company s Culex automated pharmacology systems
compared to the prior year. The Company s net loss for the fourth quarter
of fiscal 2006 includes charges totaling $600,000 for severance benefits related
to a reduction in force.
for the fiscal year ended September 30, 2006 increased 2% to $43.0 million from $42.4
million for the fiscal year ended September 30, 2005. Net loss for the fiscal year ended
September 30, 2006 was $2,610,000, or $0.53 loss per basic and diluted share, compared to
a net loss of $101,000, or $0.02 per basic and diluted share, for the fiscal year ended
September 30, 2005. Net loss for the current fiscal year includes an adjustment to the
carrying values of the Company s Baltimore clinic of $1.1 million to reflect the
impairment of the value of assets acquired, triggered by the loss of a significant
customer, the impact of the consequent decline in business at that facility and the
$600,000 of severance benefits in the fourth quarter. Service revenue for fiscal 2006
increased 3% compared to the prior year due to continuing strong demand for the
Company s analytical services and toxicology services, offset by the decline in the
Baltimore clinic sales. Product revenues for the current fiscal year declined by 8% from
fiscal 2005 as a result of the decline in Culex sales in the fourth
of revenue for the fourth fiscal quarter ended September 30, 2006 was $7.5 million, or 70%
of revenue, compared to $8.1 million, or 66% of revenue, for the fourth quarter ended
September 30, 2005. Cost of revenue for the year ended September 30, 2006 was $29.2
million, or 68% of revenue, compared to $27.0 million, or 64% of revenue, for the year
ended September 30, 2005. The decline in the percentage margins for both the quarter and
full year of fiscal 2006 reflect the ongoing costs after the revenue reduction in
Baltimore, as well as the fact that the Company s manufacturing costs remained
relatively constant while sales declined.
M. Shepperd, President and CEO, commented, The past fiscal year was one in which the
difficulties in our Baltimore clinical unit resulted in a sizeable write-down, coupled
with the fact that we had allowed our headcount growth to outpace our revenue growth. I
was recruited by the Company to address both of those issues with aggressive new programs
from which we expect to see improved future results. We continue to evaluate all facets of
our businesses with the objective of achieving strong financial returns for our
shareholders, as well as providing a stable environment for our many excellent employees
to continue their careers.
About Bioanalytical Systems, Inc.
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 about BASi.
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 regulatorystandards, and various market and operating risks
detailed in the company s filings with the Securities and Exchange
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended September 30, | Years Ended September 30, | |||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||
| Service revenue | $ | 8,770,000 | $ | 9,078,000 | $ | 34,318,000 | $ | 32,951,000 | ||||||
| Product revenue | 1,978,000 | 3,218,000 | 8,729,000 | 9,444,000 | ||||||||||
| Total revenue | 10,748,000 | 12,296,000 | 43,047,000 | 42,395,000 | ||||||||||
| Cost of service revenue | 6,725,000 | 7,043,000 | 25,690,000 | 23,589,000 | ||||||||||
| Cost of product revenue | 822,000 | 1,064,000 | 3,547,000 | 3,462,000 | ||||||||||
| Total cost of revenue | 7,547,000 | 8,107,000 | 29,237,000 | 27,051,000 | ||||||||||
| Gross profit | 3,201,000 | 4,189,000 | 13,810,000 | 15,344,000 | ||||||||||
| Operating expenses: | ||||||||||||||
| Selling | 712,000 | 673,000 | 2,750,000 | 2,592,000 | ||||||||||
| Research and development | 455,000 | 673,000 | 1,444,000 | 1,326,000 | ||||||||||
| General and administrative | 3,301,000 | 2,382,000 | 11,938,000 | 10,166,000 | ||||||||||
| Impairment loss | 1,100,000 | |||||||||||||
| Total operating expenses | 4,468,000 | 3,728,000 | 17,232,000 | 14,084,000 | ||||||||||
| Operating income (loss) | (1,267,000 | ) | 461,000 | (3,422,000 | ) | 1,260,000 | ||||||||
| Other income (expense) | 9,000 | (55,000 | ) | 9,000 | 1,000 | |||||||||
| Interest income | 5,000 | 12,000 | 11,000 | 18,000 | ||||||||||
| Interest expense | (253,000 | ) | (206,000 | ) | (1,033,000 | ) | (988,000 | ) | ||||||
| (239,000 | ) | (249,000 | ) | (1,013,000 | ) | (969,000 | ) | |||||||
| Income (loss) before income taxes | (1,506,000 | ) | 212,000 | (4,435,000 | ) | 291,000 | ||||||||
| Income taxes/(benefit) | (830,000 | ) | 70,000 | (1,825,000 | ) | 392,000 | ||||||||
| Net income (loss) | $ | ( 676,000 | ) | $ | 142,000 | $ | ( 2,610,000 | ) | $ | ( 101,000 | ) | |||
| Net income (loss) per share: | ||||||||||||||
| Basic | $ | (0.14 | ) | $ | 0.03 | $ | (0.53 | ) | $ | (0.02 | ) | |||
| Diluted | $ | (0.14 | ) | $ | 0.03 | $ | (0.53 | ) | $ | (0.02 | ) | |||
| Weighted average common and common | ||||||||||||||
| equivalent shares outstanding: | ||||||||||||||
| Basic | 4,892,127 | 4,871,127 | 4,882,505 | 4,870,370 | ||||||||||
| Diluted | 4,892,127 | 4,964,775 | 4,882,505 | 4,870,370 |