Attached files
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| 8-K - Inotiv, Inc. | v206348_8k.htm |
FOR MORE
INFORMATION: Michael R. Cox
Phone 765.497.5829
mcox@BASInc.com
Bioanalytical
Systems, Inc. Reports Financial Results for Fiscal 2010
WEST
LAFAYETTE, Ind., December 22, 2010— Bioanalytical Systems, Inc.
(Nasdaq: BASI) today reported financial results for the three and twelve months
ended September 30, 2010.
Revenue
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
2009.
Revenue
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
initiatives.
Although
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
expense.
The
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
November, 2012.
Anthony
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
companies.”
About
Bioanalytical Systems, Inc.
BASi is a
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
more about BASi.
This
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.
[TURN
THE PAGE FOR CONSOLIDATED STATEMENTS OF OPERATIONS]
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(in
thousands, except per share amounts)
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Service
revenue
|
$ | 5,772 | $ | 6,736 | $ | 21,864 | $ | 24,158 | ||||||||
|
Product
revenue
|
1,633 | 1,785 | 6,917 | 7,626 | ||||||||||||
|
Total
revenue
|
7,405 | 8,521 | 28,781 | 31,784 | ||||||||||||
|
Cost
of service revenue
|
4,711 | 5,183 | 18,574 | 20,959 | ||||||||||||
|
Cost
of product revenue
|
713 | 788 | 2,874 | 3,221 | ||||||||||||
|
Total
cost of revenue
|
5,424 | 5,971 | 21,448 | 24,180 | ||||||||||||
|
Gross
profit
|
1,981 | 2,550 | 7,333 | 7,604 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Selling
|
607 | 727 | 2,665 | 3,296 | ||||||||||||
|
Research
and development
|
112 | 170 | 546 | 762 | ||||||||||||
|
General
and administrative
|
1,289 | 1,909 | 6,119 | 7,674 | ||||||||||||
|
Impairment
loss
|
— | — | — | 472 | ||||||||||||
|
Total
operating expenses
|
2,008 | 2,806 | 9,330 | 12,204 | ||||||||||||
|
Operating
loss
|
(27 | ) | (256 | ) | (1,997 | ) | (4,600 | ) | ||||||||
|
Interest
expense
|
(242 | ) | (193 | ) | (1,028 | ) | (1,063 | ) | ||||||||
|
Other
income
|
1 | — | 1 | 3 | ||||||||||||
|
Loss
before income taxes (benefit)
|
(268 | ) | (449 | ) | (3,024 | ) | (5,660 | ) | ||||||||
|
Income
taxes (benefit)
|
11 | 967 | (333 | ) | (197 | ) | ||||||||||
|
Net
loss
|
$ | (279 | ) | $ | (1,416 | ) | $ | (2,691 | ) | $ | (5,463 | ) | ||||
|
Basic
net income (loss) per share:
|
$ | (0.06 | ) | $ | (0.29 | ) | $ | (0.55 | ) | $ | (1.11 | ) | ||||
|
Diluted
net income (loss) per share:
|
$ | (0.06 | ) | $ | (0.29 | ) | $ | (0.55 | ) | $ | (1.11 | ) | ||||
|
Weighted
common shares outstanding:
|
||||||||||||||||
|
Basic
|
4,915 | 4,915 | 4,915 | 4,915 | ||||||||||||
|
Diluted
|
4,915 | 4,915 | 4,915 | 4,915 | ||||||||||||
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