Net income for this year's third quarter increased 45.1% to $418,000 compared to $288,000 a year ago. For the nine months ended June 30, 2011, revenue increased 16.9% to $24,991,000 from $21,376,000 for the first nine months of fiscal 2010. Net income for this year's first nine months increased to $1,211,000. This compares to a net loss for the first nine months of fiscal 2010 of $2,411,000.
In May 2011, BASi closed an oversubscribed public offering for $5,506,000 of units consisting of convertible preferred shares and warrants to purchase common shares. Accounting for the value of the warrants and the preferred stock in the third quarter and first nine months of fiscal 2011 resulted in a one-time deemed dividend to preferred stockholders of $3,277,000, which was deducted from net earnings to compute GAAP earnings per share. Additionally, we immediately charged $991,080, the dividends payable to the preferred stockholders, against net earnings to compute GAAP earnings per share. This resulted in a GAAP loss per share of $0.65 and $0.58 for the third quarter and first nine months of fiscal 2011, respectively. Excluding the deemed dividend to preferred stockholders, pro-forma diluted net income per share was $0.06 for this year's third quarter and $0.22 for this year's first nine months. This compares to net income per diluted share of $0.06 for the third quarter of fiscal 2010 and a loss per share of $0.49 for the first nine months of fiscal 2010. We consider the pro-forma diluted earnings per share to be a useful measure in comparing operating results of BASi because it removes the theoretical calculation for the deemed dividend. A reconciliation of GAAP to non-GAAP financial measures is provided in the table attached to this press release.
At June 30, 2011, BASi reported cash and cash equivalents of $4,632,000, working capital of $1,802,000, total long-term obligations of $7,296,000, and shareholders' equity of $16,253,000, or $2.35 per outstanding share. At September 30, 2010, cash and cash equivalents were $1,422,000, the working capital deficiency was $3,342,000, total long-term obligations were $7,100,000, and shareholders' equity was $10,667,000, or $2.17 per outstanding share.
Anthony Chilton, President and Chief Executive Officer, said, "R&D outsourcing and 'single molecule' biotech companies are increasingly significant factors in new drug development, which are trends we expect to continue. So in addition to building our longstanding relationships with large pharmaceutical companies, we are promoting our services to smaller drug development companies which generally do not have the desire or the resources to build laboratory facilities or assemble staffs with the scientific and regulatory capabilities required to bring a drug candidate through the approval process. We recently launched our Enhanced Drug Discovery services to further this strategy, using our proprietary Culex® automated in vivo sampling and dosing technology to provide early experiments in our laboratories that previously would have been conducted in the sponsor's facilities.”
"Pricing is improving, although it still lags pre-recession levels, and the volume of studies and number of samples to assay have increased steadily for us so far this year. We also have experienced an increase in proposal opportunities and in new orders accepted, especially in our toxicology group. These are encouraging signs that our stepped-up investment in sales and marketing is setting the stage for further growth in the years ahead."
Chilton said that based on results through the first nine months of fiscal 2011, management now expects revenue for the current fiscal year in the range of $33-34 million, compared to prior guidance of $35 million, and net earnings of $1.4 to $1.5 million, compared to prior guidance of $1.6 million.
Earnings Conference Call
BASi has scheduled a conference call at 11:00 a.m. EDT this morning. To participate, dial 800.573.4754, passcode #85887155 five minutes before the start of the call. A simultaneous webcast may be accessed from the Investors tab at www.BASInc.com. The webcast will be available for replay after 2:00 p.m. EDT, at this same Internet address. For a telephone replay, dial 888.286.8010, passcode #77991616 after 2:00 p.m. EDT.
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.
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Condensed Consolidated Statements Of Operations