Unassociated Document FOR MORE INFORMATION: Michael R. Cox Phone 765.497.5829 mcox@bioanalytical.com Bioanalytical Systems, Inc. Reports Profits for Third Quarter and First Nine Months of Fiscal 2007

Systems, Inc. Reports Profits

Third Quarter and First Nine Months of Fiscal 2007

LAFAYETTE, Ind., August 9, 2007 - Bioanalytical Systems, Inc. (Nasdaq:BASI)

today reported financial results for its third fiscal quarter and nine months

ended June 30, 2007.

for the third fiscal quarter of 2007 increased 26% to $12.6 million compared

$10.0 million for the comparable quarter of the prior year. Net income for

the third fiscal quarter of 2007 was $449,000, or $0.09 per share

(basic and diluted), versus a net loss of $(1,756,000), or $(0.36) per share

(basic and diluted), for the comparable quarter of 2006. The Company's

2007 revenue increase was the result of a $2.7 million or a 34%

increase in service revenues, led by improvements in toxicology and

clinical research operations. The Company's clinical research unit in Baltimore

is in the midst of a rebuilding program after experiencing significant losses

revenue for the third fiscal quarter was $8.5 million, or 67% of revenue,

compared to $7.5 million, or 75% of revenue, in the same period last year.

resulting $1.0 million margin improvement was the result of higher utilization

of the Company's services capacity, especially in the Baltimore clinic where

costs are relatively fixed.

expenses were $3.0 million for the current quarter, a decrease of $1.9

million from the third quarter of fiscal 2006. Included in the prior year's

expenses were $1.3 million in write-downs of asset values at the Company's

Baltimore clinic. The remainder of the decrease is primarily the result of

headcount reductions initiated at the beginning of the current fiscal

for the nine months ended June 30, 2007 increased 8% to $34.8 million, compared

to $32.3 million for the comparable period of the prior year. Net income for

first nine months of fiscal 2007 was $1,129,000, or $0.23 per share (basic

diluted), versus a net loss of $(1,934,000), or $(0.40) per share (basic and

diluted), for the first nine months of fiscal 2006. The higher revenue was

the result of a 10% increase in service revenues and unchanged product revenues

compared to the same period of 2006.

revenue for the current nine months was $24.1 million, or 69% of revenue,

compared to $21.7 million, or 67% of revenue, in the same period last year.

current year increase was the result of new services commercialized in fiscal

expenses decreased $4.4 million to $8.4 million for the current nine months

$12.8 million in the same period of 2006. The decrease resulted from the

same factors cited above for the current quarter.

M. Shepperd, President and CEO said, "Our third fiscal quarter and nine months

ended June 30, 2007 were encouraging. We have continued the momentum of our

first two quarters, with the goal of building a consistently profitable

operation. BASi people throughout the organization are contributing

to operations improvement. We are in the midst of a multi-functional effort

is building our Baltimore clinic into a solid contributor. We have monitored

controlled cash flow to the extent that we believe we will be able to retire

significant amount of debt maturing in the coming year without extensive

additional borrowings. As we enter the fourth quarter, we are determined to

deliver in the current year, and to enter our next fiscal year on a positive

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 new

drugs to market. Visit www.bioanalytical.com for more about BASi.

release contains forward-looking statements, including statements with respect

to potential financial results in the subsequent quarter and possible future

debt retirement, that are subject to risks and uncertainties including, but

limited to, risks and uncertainties related to the development of products

services, changes in technology, industry standards and regulatory standards,

the effectiveness of cost containment, revenue growth and cash management

efforts and the various market and operating risks detailed in the company's

filings with the Securities and Exchange Commission.

SEE FOLLOWING PAGE FOR CONSOLIDATED STATEMENTS OF

STATEMENTS OF OPERATIONS

thousands, except per share amounts)