Full Press Release Details
Systems, Inc. Reports Profit for Second Quarter and First Half of Fiscal
LAFAYETTE, Ind., May 8, 2007 - Bioanalytical Systems, Inc. (Nasdaq:BASI) today
reported financial results for its second fiscal quarter and six months ended
for the second fiscal quarter decreased 9% to $11.3 million compared to $12.4
million for the second fiscal quarter of the prior year. Net income for the
second quarter of fiscal 2007 was $124,000, or $0.03 per basic and diluted
share, versus $538,000, or $0.11 per basic and diluted share, for the second
quarter of fiscal 2006. The decrease resulted primarily from a decline in
bioanalytical services, where revenues in the same quarter a year earlier
been particularly strong due to a large study rescheduled from an earlier
decrease was offset by growth in the Baltimore clinic from successful new
efforts, continued demand in toxicology operations, and robust Product revenue.
revenue for the current second quarter was $8.1 million, or 72% of revenue,
compared to $7.5 million, or 60% of revenue in the same period last year.
increase, as a percentage of revenue, occurred largely because the
cost of productive capacity (personnel, facilities and laboratory equipment)
relatively fixed, resulting in a higher cost of services as a percentage of
sales when compared to the same period a year ago when the revenue
decrease did not create a corresponding decrease in the costs of productive
substantial portion of products shipped in the second fiscal quarter were
manufactured in the prior quarter, resulting in an increase in the cost of
Products for the second fiscal quarter. Manufacturing activity was lower
current fiscal quarter, resulting in under-absorption of manufacturing costs
the current quarter.
and administrative costs were $1.9 million for the quarter, a decrease of
$1.0 million from the second quarter of fiscal 2006. This decrease is
attributable primarily to the September 2006 personnel downsizing effort.
General and administrative costs also included a loss on the anticipated
an excess building, a transaction completed in April 2007 which generated
for the six months ended March 31, 2007 was relatively unchanged at $22.2
million compared to $22.3 million for the similar period in the prior year.
income for the six months was $680,000, or $0.14 per basic and diluted
share, versus a net loss of $(178,000), or $(0.04) per basic and diluted
for the first six months of fiscal 2006. Revenues from Products increased
the six months, offset by a 1% decrease in Service revenues.
revenue for the current six months was $15.6 million, or 70% of revenue,
compared to $14.2 million, or 64% of revenue in the same period last year.
lower margins experienced year-to-date are the result of lower capacity
utilization compared to fiscal 2006.
and administrative costs decreased by $2.3 million to $3.5 million for the
months ended March 31, 2007 as a result of the same factors that
occurred in the current quarter.
M. Shepperd, Chief Executive Officer, said, "We are pleased that we were able to
produce a profit for the second consecutive quarter, as we build on results
achieved in the first quarter. We also are pleased to report that our Baltimore
clinic was profitable for the quarter, its first profitable quarter
since BASi acquired that business in 2003. Our improved results
reflected the effort of the entire team at all levels to improve our operations.
We continue to focus the entire organization on our objective of delivering
consistently profitable results."
Systems, Inc. is a pharmaceutical development company providing contract
research services and monitoring instruments to the world's leading drug
development companies. BASi focuses on developing innovative services and
products that increase efficiency and reduce costs associated with taking
drugs to market. Visit www.bioanalytical.comfor
release contains forward-looking statements that are subject to risks and
uncertainties including, but not limited to, risks and uncertainties related
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
FOLLOWING PAGE FOR CONSOLIDATED STATEMENTS OF OPERATIONS
CONSOLIDATED STATEMENTS OF OPERATIONS
thousands, except per share amounts)
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| Service revenue | $ | 8,726 | $ | 10,053 | $ | 17,334 | $ | 17,592 | |||||
| Product revenue | 2,585 | 2,364 | 4,861 | 4,669 | |||||||||
| Total revenue | 11,311 | 12,417 | 22,195 | 22,261 | |||||||||
| Cost of service revenue | 6,968 | 6,760 | 13,585 | 12,624 | |||||||||
| Cost of product revenue | 1,163 | 725 | 2,040 | 1,560 | |||||||||
| Total cost of revenue | 8,131 | 7,485 | 15,625 | 14,184 | |||||||||
| Gross profit | 3,180 | 4,932 | 6,570 | 8,077 | |||||||||
| Operating expenses: | |||||||||||||
| Selling | 673 | 680 | 1,352 | 1,413 | |||||||||
| Research and development | 101 | 201 | 456 | 639 | |||||||||
| General and administrative | 1,858 | 2,873 | 3,497 | 5,774 | |||||||||
| (Gain) loss on sale of property and equipment | 95 | 11 | 83 | (5 | ) | ||||||||
| Total operating expenses | 2,727 | 3,765 | 5,388 | 7,821 | |||||||||
| Operating income (loss) | 453 | 1,167 | 1,182 | 256 | |||||||||
| Interest income | 12 | 2 | 24 | 4 | |||||||||
| Interest expense | (230 | ) | (248 | ) | (471 | ) | (508 | ) | |||||
| Other income | --- | --- | 3 | --- | |||||||||
| Income (loss) before income taxes | 235 | 921 | 738 | (248 | ) | ||||||||
| Income taxes (benefit) | 111 | 383 | 58 | (70 | ) | ||||||||
| Net income (loss) | $ | 124 | $ | 538 | $ | 680 | $ | (178 | ) | ||||
| Net income (loss) per share: | |||||||||||||
| Basic | $ | 0.03 | $ | 0.11 | $ | 0.14 | $ | (0.04 | ) | ||||
| Diluted | $ | 0.03 | $ | 0.11 | $ | 0.14 | $ | (0.04 | ) | ||||
| Weighted common and common equivalent | |||||||||||||
| shares outstanding: | |||||||||||||
| Basic | 4,909 | 4,875 | 4,907 | 4,873 | |||||||||
| Diluted | 4,940 | 4,971 | 4,924 | 4,873 |