Unassociated Document FOR MORE INFORMATION: Michael R. Cox Phone 765.497.5829 mcox@BASInc.com Bioanalytical Systems, Inc. Reports Financial Results for Fiscal 2010

INFORMATION: Michael R. Cox

Systems, Inc. Reports Financial Results for Fiscal 2010

LAFAYETTE, Ind., December 22, 2010- Bioanalytical Systems, Inc.

(Nasdaq: BASI) today reported financial results for the three and twelve months

ended September 30, 2010.

decreased 13.1% in the fourth quarter of fiscal 2010 to $7.4 million compared to

revenue of $8.5 million for the same period in fiscal 2009. Service revenue

declined 14.3% to $5.8 million and Product revenue declined 8.5% to $1.6

million. The net loss for the fourth quarter of fiscal 2010 was $0.3 million, or

$0.06 per basic and diluted share, compared to a net loss of $1.4 million, or

$0.29 per basic and diluted share, for the fourth quarter of fiscal

decreased 9.5% in fiscal 2010 to $28.8 million compared to revenue of $31.8

million in fiscal 2009. Service revenue declined 9.5% and Product revenue

declined 9.3% from the prior fiscal year to $21.9 million and $6.9 million,

respectively. The net loss for fiscal 2010 was $2.7 million, or $0.55 per basic

and diluted share, compared to a net loss of $5.5 million, or $1.11 per basic

and diluted share, for fiscal 2009. Included in the net loss for fiscal 2010

were one-time costs such as severance and retirement payments as well as lease

settlement costs. In fiscal 2009, we also had one-time costs such as

severance payments and a non-cash impairment charge of $472,000 eliminating the

goodwill of the Company's UK subsidiary. The revenue decline in

fiscal 2010 stems mainly from study delays, price declines and spending

reductions by our customers as part of their overall cost savings

our revenues for the current fiscal year were less than our prior fiscal year,

our revenues increased 16% in the second half of the current fiscal year from

the first half. This increase is the result of increased proposal

opportunities and acceptance rates for our Service revenues as well as slightly

increased capital spending by Product customers in the second half of the

current fiscal year. Selling, general and administrative costs

decreased $1.0 million, or 21%, in the second half of the current fiscal year

following one-time costs, such as severance and retirement payments for

employees and lease settlement costs, incurred in the first half of the

year. The reduction in the current fiscal year's net loss of nearly

51% compared to the prior year's loss is due mainly to a combination of the

revenue increase in the second half of the year as well as the cost control

measures implemented during our second fiscal quarter. One such

control was a reduction in work force, through both attrition and terminations,

impacting all areas of operations, reducing our annual compensation

Company negotiated an amendment to two of its loan agreements with Regions Bank

("Regions"), on November 29, 2010. Regions agreed to accept a

$500,000 principal payment on a note with $1.1 million of principal maturing on

December 18, 2010 and a $500,000 principal payment on another note with $1.3

million of principal maturing on February 11, 2011. The unpaid

principal on the notes will be incorporated into a replacement note maturing in

Chilton, Chief Executive Officer, stated, "The past fiscal year was one of

significant challenges for us. Though we experienced lower demand for

our products and services, significant project delays and pricing concessions

for our services in the first half of the current year primarily due to the

general economic conditions, we continue to believe in the fundamentals of the

CRO market. We experienced a stronger demand in the second half of

the current year for our products and services and expect to see slow but

continued improvement in the new year. For fiscal 2011, we remain focused on

maximizing cash flow as well as on sales execution, operational performance and

building strategic partnerships with pharmaceutical and biotechnology

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 uncertainties

related to changes in

the market and demand for our products and services, the

development, marketing and sales 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.

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STATEMENTS OF OPERATIONS

thousands, except per share amounts)