Full Press Release Details
Systems, Inc. Reports Fourth Quarter
Year-End 2007 Financial Results
LAFAYETTE, Ind., December 20, 2007- Bioanalytical Systems, Inc. (Nasdaq: BASI)
today reported financial results for its fourth quarter and fiscal year ended
September 30, 2007. Revenue for the quarter ended September 30, 2007 decreased
3% to $10.4 million compared to $10.7 million for the quarter ended September
30, 2006. Net loss for the fourth quarter of fiscal 2007 was $203,000, or $0.04
loss per basic and diluted share, compared to a net loss of $736,000, or $0.15
loss per basic and diluted share, for the fourth quarter of fiscal 2006. The
decrease in revenue in the fourth quarter of fiscal 2007 was a result of a
decline in revenues in the Company's bioanalytical laboratories, which was
largely offset by gains in toxicology services revenues and product sales.
Product revenues for the quarter increased 22% compared to the fourth quarter
fiscal 2006 due to increased sales of the Company's Culex
automated pharmacology systems. Included in the net loss for the fourth quarter
of fiscal 2007 were $354,000 of charges for severance payments to former
officers and directors of the Company. The Company's net loss for the fourth
quarter of fiscal 2006 included charges totaling $600,000 for severance benefits
related to a workforce reduction.
for the fiscal year ended September 30, 2007 increased 5% to $45.2 million
$43.0 million for the fiscal year ended September 30, 2006. Net income for
fiscal year ended September 30, 2007 was $926,000, or $0.19 income per basic
diluted share, compared to a net loss of $2,670,000, or $0.55 loss per basic
diluted share, for the fiscal year ended September 30, 2006. The net loss for
the 2006 fiscal year included adjustments to the carrying values of the
Company's Baltimore clinic of $1.1 million to reflect an impairment loss and
$600,000 of severance benefits. Service revenue for fiscal 2007 increased 5%
compared to fiscal 2006 due to continuing strong demand for the Company's
toxicology services. Product revenues for the 2007 fiscal year also increased
5% from fiscal 2006 as a result of the improvement in Culex
revenue for the fourth fiscal quarter ended September 30, 2007 was $7.3 million,
or 70% of revenue, compared to $7.6 million, also 70% of revenue, for the fourth
quarter ended September 30, 2006. For the year ended September 30, 2007, cost
revenue was $31.5 million, or 70% of revenue, compared to $29.3 million, or
of revenue, for the year ended September 30, 2006. The increase in the
percentage of cost of revenue for fiscal 2007 reflects an increase in cost
revenues at the Company's toxicology operations, where a higher utilization of
capacity increased the amount of total costs charged to cost of
full year and fourth quarter financial results of fiscal 2006 have been
retrospectively adjusted to reflect the Company's change in its method of
accounting for inventory in the fourth quarter of fiscal 2007 to FIFO (first-in,
first-out) from LIFO (last-in, first-out).
M. Shepperd, President and CEO, commented, "We are pleased that we can report
progress in our performance for the fiscal year ended September 30, 2007, the
Company's first profitable year in four years. Had we not had the severance
costs associated with completing our management change in the fourth quarter
this year, we would have shown profitable results in each quarter of the year.
Our people worked hard to make this happen; however, major efforts remain to
build consistently profitable operations in our Baltimore clinic and United
Kingdom operations. Both of these operations have new management and new or
renovated facilities where we will continue our effort to match their
performance to the strength of the markets in which they do business. Our work
is cut out for us, to build on the turnaround we began this past
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
drugs to market. Visit http://www.bioanalytical.com for more about
release contains forward-looking statements that are subject to risks and
uncertainties including, but not limited to, risks and
to the development of products and services, changes in technology, industry
standards and regulatory standards, and various market
operating risks detailed in the company's filings with the Securities and
Exchange Commission.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Years Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| Service revenue | $ | 8,030,000 | $ | 8,770,000 | $ | 36,051,000 | $ | 34,318,000 | |||||
| Product revenue | 2,405,000 | 1,979,000 | 9,194,000 | 8,730,000 | |||||||||
| Total revenue | 10,435,000 | 10,749,000 | 45,245,000 | 43,048,000 | |||||||||
| Cost of service revenue | 6,316,000 | 6,725,000 | 27,544,000 | 25,691,000 | |||||||||
| Cost of product revenue | 1,016,000 | 924,000 | 3,909,000 | 3,647,000 | |||||||||
| Total cost of revenue | 7,332,000 | 7,649,000 | 31,453,000 | 29,338,000 | |||||||||
| Gross profit | 3,103,000 | 3,100,000 | 13,792,000 | 13,710,000 | |||||||||
| Operating expenses: | |||||||||||||
| Selling | 745,000 | 712,000 | 2,783,000 | 2,750,000 | |||||||||
| Research and development | 213,000 | 455,000 | 881,000 | 1,444,000 | |||||||||
| General and administrative | 2,063,000 | 3,301,000 | 7,738,000 | 11,939,000 | |||||||||
| Impairment loss | -- | -- | -- | 1,100,000 | |||||||||
| Total operating expenses | 3,021,000 | 4,468,000 | 11,402,000 | 17,233,000 | |||||||||
| Operating income (loss) | 82,000 | (1,368,000 | ) | 2,390,000 | (3,523,000 | ) | |||||||
| Other income (expense) | (1,000 | ) | 9,000 | 3,000 | 10,000 | ||||||||
| Interest income | 35,000 | 5,000 | 87,000 | 11,000 | |||||||||
| Interest expense | (264,000 | ) | (253,000 | ) | (981,000 | ) | (1,033,000 | ) | |||||
| (230,000 | ) | (239,000 | ) | (891,000 | ) | (1,012,000 | ) | ||||||
| Income (loss) before income taxes | (148,000 | ) | (1,607,000 | ) | 1,499,000 | (4,535,000 | ) | ||||||
| Income taxes/(benefit) | 55,000 | (871,000 | ) | 573,000 | (1,865,000 | ) | |||||||
| Net income (loss) | $ | (203,000 | ) | $ | (736,000 | ) | $ | 926,000 | $ | (2,670,000 | ) | ||
| Net income (loss) per share: | |||||||||||||
| Basic | $ | (0.04 | ) | $ | (0.15 | ) | $ | 0.19 | $ | (0.55 | ) | ||
| Diluted | $ | (0.04 | ) | $ | (0.15 | ) | $ | 0.19 | $ | (0.55 | ) | ||
| Weighted average common and common equivalent shares outstanding: | |||||||||||||
| Basic | 4,909,000 | 4,892,000 | 4,909,000 | 4,883,000 | |||||||||
| Diluted | 4,982,000 | 4,892,000 | 4,960,000 | 4,883,000 |