May 9, 2007
Bioanalytical Systems Inc. reports profit for second quarter, first half of fiscal 2007WEST LAFAYETTE, Ind. - Bioanalytical Systems Inc. (Nasdaq:BASI) today reported financial results for its second fiscal quarter and six months ended March 31, 2007. Revenue for the second fiscal quarter decreased 9 percent to $11.3 million compared to $12.4 million for the second fiscal quarter of the prior year. Net income for the second quarter of fiscal 2007 was $124,000, or $0.03 per basic and diluted share, versus $538,000, or $0.11 per basic and diluted share, for the second quarter of fiscal 2006
The decrease resulted primarily from a decline in bioanalytical services, where revenues in the same quarter a year earlier had been particularly strong due to a large study rescheduled from an earlier quarter. This decrease was offset by growth in the Baltimore clinic from successful new sales efforts, continued demand in toxicology operations and robust product revenue.
Cost of revenue for the current second quarter was $8.1 million, or 72 percent of revenue, compared to $7.5 million, or 60 percent of revenue, in the same period last year. This increase, as a percentage of revenue, occurred largely because the cost of productive capacity (personnel, facilities and laboratory equipment) is relatively fixed, resulting in a higher cost of services as a percentage of sales when compared to the same period a year ago when the revenue decrease did not create a corresponding decrease in the costs of productive capacity.
A substantial portion of products shipped in the second fiscal quarter were manufactured in the prior quarter, resulting in an increase in the cost of products for the second fiscal quarter. Manufacturing activity was lower in the current fiscal quarter, resulting in under-absorption of manufacturing costs in the current quarter.
General and administrative costs were $1.9 million for the quarter, a decrease of 35 percent or $1.0 million from the second quarter of fiscal 2006. This decrease is attributable primarily to the September 2006 personnel downsizing effort. General and administrative costs also included a loss on the anticipated sale of an excess building, a transaction completed in April 2007, which generated $0.6 million in cash.
Revenue for the six months ended March 31, 2007, was relatively unchanged at $22.2 million, compared to $22.3 million for the similar period in the prior year. Net income for the six months was $680,000, or $0.14 per basic and diluted share, versus a net loss of $178,000, or $0.04 per basic and diluted share for the first six months of fiscal 2006. Revenues from products increased 4 percent for the six months, offset by a 1 percent decrease in service revenues.
Cost of revenue for the current six months was $15.6 million, or 70 percent of revenue, compared to $14.2 million, or 64 percent of revenue, in the same period last year. The lower margins experienced year-to-date are the result of lower capacity utilization compared to fiscal 2006.
General and administrative costs decreased by $2.3 million to $3.5 million for the six months ended March 31, 2007, as a result of the same factors that occurred in the current quarter.
Richard M. Shepperd, chief executive officer, said, "We are pleased that we were able to produce a profit for the second consecutive quarter as we build on results achieved in the first quarter. We also are pleased to report that our Baltimore clinic was profitable for the quarter, its first profitable quarter since BASi acquired that business in 2003. Our improved results reflect the effort of the entire team at all levels to improve operations. We continue to focus the entire organization on our objective of delivering consistently profitable results."
About Bioanalytical Systems Inc.
Bioanalytical 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 http://www.bioanalytical.com/ for more about BASi
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