Abaxis Inc · 8-K · For 7/22/04 · EX-99.1

Filed On 7/22/04 4:10pm ET   ·   SEC File 0-19720   ·   Accession Number 891092-4-3400

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         4      8K 
 2: EX-99.1     Press Release                                          5±    26K 

EX-99.1   ·   Press Release

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                                                                    Exhibit 99.1

ABAXIS Reports Record Financial Results for the First Quarter of Fiscal 2005

Record Quarterly Reagent Disc Sales of 701,000 Units as Total Quarterly 
Revenues Up 28% From Prior Year Period

      UNION  CITY,  Calif.,  July  22  /PRNewswire-FirstCall/  --  ABAXIS,  Inc.
(Nasdaq:  ABAX), a medical products company  manufacturing  point-of-care  blood
analysis  systems,  today reported record financial results for the first fiscal
quarter ended June 30, 2004. Highlights include:                                

-- Quarterly revenues of $13.2 million, a 28% increase over the same    
period last year.                                                 

-- Diluted EPS: $0.07 versus $0.04 in the same period last year.        
-- U.S. sales of $11.5 million, a 28% increase over the same period last
year.                                                             

-- International sales of $1.7 million, a 27% increase, compared to the 
same period last year.                                            

-- Medical sales: up 39% to $2.2 million, representing 17% of total     
revenues.                                                         

-- Quarterly recurring reagent disc and hematology reagent revenue of   
$8.5 million, a 31% increase over the same period last year.      

-- Quarterly total reagent disc sales of 701,000 units, a 31% increase  
over the same period last year.                                   

-- Quarterly medical reagent disc sales of 89,000 units, a 62% increase 
over the same period last year.                                   

-- Quarterly veterinary reagent disc sales of 612,000 units, a          
28% increase over the same period last year.                      

Quarterly Results:  For the first fiscal quarter, ABAXIS reported record
revenues of $13.2 million, compared with revenues of $10.3 million for the      
comparable period last year, an increase of 28 percent. Instrument revenue and  
recurring reagent disc and hematology reagent revenue increased by 32 and       
31 percent, respectively, over the same period last year.  The Company          
reported net income attributable to common shareholders of $1.4 million,        
compared to $659,000 for the same period last year; an increase of              
118 percent.  Net income for the quarter benefited from the conversion, in      
October 2003, of Series D and E Preferred Stock into common shares; thereby     
eliminating the Company's obligation to distribute preferred dividends in the   
quarter ended June 30, 2004.  The Company's effective tax rate in the quarter   
ended June 30, 2004 was 39% compared to 3% in the same period last year.  The   
Company reported diluted net income per share of $0.07 (calculated based on     
21,901,000 shares), compared to $0.04 per share (calculated based on            
17,480,000 shares) for the same period last year.                               

  Other Reported Information:  Recurring reagent disc and hematology reagent
revenue for the first fiscal quarter was $8.5 million, up 31 percent over the   
$6.5 million reported in the same period last year.  During the quarter, the    
Company sold 701,000 medical and veterinary reagent discs, an increase of       
31 percent compared to 534,000 medical and veterinary reagent discs sold        
during the same period last year.  The Company sold 2,974 veterinary            
hematology reagent kits during the quarter, up 32 percent compared to           
2,256 hematology reagent kits sold for the same period last year. The Company   
ended the quarter with $18.7 million in cash, cash equivalents and short-term   
investments and no long-term debt.                                              

  Clint Severson, chairman, president and chief executive officer of ABAXIS,
Inc., said, "The results of the first quarter reflect our continued focus on    
the execution of our strategic business plan.  During the quarter we achieved   
strong operating results geographically -- domestically up 28 percent and       
internationally up 27 percent -- and along all product lines, compared to the   
same period last year.  We are especially pleased with the strong increase in   
medical reagent disc sales on a comparable basis, as well as the continued      
strength in our flagship veterinary business.  We are pleased to be off to a    
strong start for fiscal year 2005."                                             

Mr. Severson continued, "During the quarter the U.S. Food and Drug      
Administration granted CLIA waiver status for our lipids test panel when used   
in conjunction with the ABAXIS Piccolo point of care analyzer.  We are pleased  
with the recognition that our lipids panel and the Piccolo analyzer deliver     
high accuracy results from multiple analytes in a point of care setting         
without the requirement of specialized staff training.  Rapid turnaround,       
accuracy of results and convenience are the hallmarks of ABAXIS technology.     
We are gratified with this CLIA waiver determination by the F.D.A."             

  Also during the quarter ABAXIS signed an agreement with Henry Schein, Inc.
to sell and distribute the ABAXIS VetScan Chemistry and Hematology Systems,     
along with the associated consumable merchandise. Henry Schein's Veterinary     
Division serves more than 70 percent of the estimated 24,000 veterinary         
clinics in the United States.                                                   

Conference Call                                                         

  ABAXIS has scheduled a conference call to discuss its financial results at
4:15 p.m. EDT Thursday, July 22, 2004.  Participants can dial 877-356-5706 or   
706-643-0580 to access the conference call, or can listen via a live Internet   
web cast which can be found at www.abaxis.com.  A replay of the call is         
available by visiting www.abaxis.com for the next 30 days or by calling         
800-642-1687 or 706-645-9291, access code 8767446, through July 26, 2004.       
This press release is also available prior to and after the call via ABAXIS'    
website or the Securities Exchange Commission's website at www.sec.gov.         

About ABAXIS                                                            

 ABAXIS develops, manufactures and markets portable blood analysis systems
for use in any veterinary or human patient-care setting to provide clinicians   
with rapid blood constituent measurements.  The system consists of a compact,   
6.9 kilogram (15 pounds), portable analyzer and a series of single-use plastic  
discs, called reagent discs that contain all the chemicals required to perform  
a panel of up to 13 tests on veterinary patients and 14 tests on human          
patients. The system can be operated with minimal training and performs         
multiple routine tests on whole blood, serum or plasma samples.  The system     
provides test results in less than 14 minutes with the precision and accuracy   
equivalent to a clinical laboratory analyzer.                                   

This press release includes statements that constitute "forward-looking 
statements" within the meaning of the Private Securities Litigation Reform Act  
of 1995 (the "Reform Act").  ABAXIS claims the protection of the safe-harbor    
for forward-looking statements contained in the Reform Act.  These              
forward-looking statements are often characterized by the terms "may,"          
"believes," "projects," "expects," or "anticipates," and do not reflect         
historical facts.  Specific forward-looking statements contained in this press  
release include, but are not limited to, risks and uncertainties related to     
fluctuations in the Company's share price, the market acceptance of the         
Company's products and the continuing development of its products, required     
United States Food and Drug Administration ("FDA") clearance and other          
government approvals, risks associated with manufacturing and distributing its  
products on a commercial scale free of defects, risks related to the            
introduction of new instruments manufactured by third parties, risks            
associated with entering the human diagnostic market on a larger scale, risks   
related to the protection of the Company's intellectual property or claims of   
infringement of intellectual property asserted by third parties, risks          
involved in carrying of inventory, risks associated with the ability to         
attract, train and retain competent sales personnel, general market             
conditions, competition and other risks detailed from time to time in ABAXIS'   
periodic reports filed with the United States Securities and Exchange           
Commission. Forward-looking statements speak only as of the date the            
statement was made. ABAXIS does not undertake and specifically disclaims any    
obligation to update any forward-looking statements.                            

ABAXIS, Inc.                                                          
Summary of Financial Information                                      
(In thousands, except per share data)                                 
(Unaudited)                                                           

                                                  Three Months Ended
                                                 June 30
                                                 2004               2003

Net revenues                                   $13,242           $10,326

Costs and operating expenses:                                           
     Cost of revenues                            6,074             5,220
     Selling, general and administrative         3,641             3,217
     Research and development                    1,237             1,032
Total costs and operating expenses              10,952             9,469

Income from operations                           2,290               857
Interest and other income                           60                48
 Interest and other expense                          (6)              (18)
Net income before income taxes                   2,344               887
Income tax provision                               910                24
Net Income                                      $1,434              $863
Basic net income per share (a)                   $0.07             $0.04
Diluted net income per share (a)                 $0.07             $0.04

Weighted average common shares                                          
 outstanding - basic                            19,575            16,921

Weighted average common shares                                          
 outstanding - diluted                          21,901            17,480

  (a) Net income attributable to common shareholders used in the computation
   of diluted net income per share for the three months ended June 30,
    2004 was $1,434,000.  Net income attributable to common shareholders
     used in the computation of diluted net income per share for the three
    months ended June 30, 2003 was $659,000, which includes dividends of
$204,000.                                                       

ABAXIS, Inc.                                                          
Balance Sheet Data:                                                   
(Unaudited and in thousands)                                          

                                                 June 30,          March 31,
                                                2004              2004
Current assets:                                                         
 Cash and cash equivalents                     $10,670            $9,324
 Short-term investments                          7,998             7,998
 Trade receivables (net)                         9,023             8,202
 Inventories                                     5,829             5,736
 Prepaid expenses                                  439               384
 Net deferred tax asset - current                1,026               609
   Total current assets                         34,985            32,253
 Property and equipment, net                     8,352             8,191
 Intangible assets, net                            656               675
 Deposits and other assets                         135               155
 Net deferred tax asset - non-current           19,718            20,624
   Total assets                                $63,846           $61,898

Current liabilities:                                                    
  Accounts payable                              $2,548            $2,721
  Dividends payable                                 --                28
  Accrued payroll and related expenses           2,387             2,853
  Other accrued liabilities                        507               319
  Warranty reserve                                 164               181
  Deferred revenue                                 266               264
  Current portion of capital lease obligations      21                22
    Total current liabilities                    5,893             6,388

Non-current liabilities:                                                
  Capital lease obligations, less current portion   11                16
  Deferred rent                                    425               409
  Deferred revenue, less current portion           546               474
  Commission obligation, less current portion       33                39
    Total non-current liabilities                1,015               938

Shareholders' equity:                                                   
  Common stock                                  93,373            92,441
   Accumulated deficit                          (36,435)          (37,869)
    Total shareholders' equity                  56,938            54,572
Total liabilities and shareholders'                             
     equity                                    $63,846           $61,898

 Reconciliation of Net Income to Net Income Attributable to Common
Shareholders
(in thousands)

                                            Three Months Ended
                                         June 30
                                            2004      2003

Net income                                       $1,434      $863       
Preferred dividends                                  --      (204)      
Net income attributable to common shareholders   $1,434      $659       

 Customer and Geographic Information
(in thousands)

                                        Three Months Ended
                                       June 30
                                         2004       2003

United States                                  $11,512     $8,962       
International                                    1,730      1,364       
Total revenues                                 $13,242    $10,326       

 Customer and Market Information
(in thousands)

                                          Three Months Ended
                                         June 30
                                          2004        2003

Medical Market                                  $2,240      $1,607      
Veterinary Market                               10,510       8,246      
Other                                              492         473      
Total revenues                                 $13,242     $10,326      

SOURCE  ABAXIS, Inc.                                                            
-0-                             07/22/2004                              
/CONTACT:  Clint Severson, Chief Executive Officer of ABAXIS, Inc.,     
+1-510-675-6500; or Retail:  Joe Dorame, or Institutional/Analysts:  Joe Diaz,  
+1-480-675-0400, both of RCG Capital Markets Group, for ABAXIS, Inc./           
/Web site:  http://www.abaxis.com /                                     
(ABAX)                                                                  

CO:  ABAXIS, Inc.                                                               
ST:  California                                                                 
IN:  HEA MTC BIO                                                                
SU:  ERN                                                                        

Dates Referenced Herein   and   Documents Incorporated By Reference

This 8-K Filing		Date		Other Filings
		6/30/03		11-K, 10-K, 10-Q, 4
		6/30/04		10-Q, 4
Filed On / Filed As Of / For The Period Ended		7/22/04
		7/26/04
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