SOURCE: BASi (Bioanalytical Systems, Inc.)

August 10, 2005 17:10 ET

Bioanalytical Systems, Inc. Reports 6% Revenue Increase, Profit for Third Quarter Fiscal 2005

WEST LAFAYETTE, IN -- (MARKET WIRE) -- August 10, 2005 -- Bioanalytical Systems, Inc. (NASDAQ: BASI) today reported financial results for its third fiscal quarter and nine months ended June 30, 2005.

Revenue for the third fiscal quarter of 2005 increased 6% to $11.3 million compared to $10.6 million for the third fiscal quarter of the prior year. Net income for the third fiscal quarter of 2005 was $356,000, or $0.07 per diluted share, versus a net income of $635,000, or $0.13 per diluted share, for the third fiscal quarter of 2004. The increases in revenues were the result of an 18% increase in service revenues driven by strong demand for the Company's laboratory services, partially offset by a 24% decline in product revenues. Sales of the Company's line of Culex automated blood sampling systems were down in the quarter.

Cost of revenue for the third fiscal quarter was $6.3 million, or 56% of revenue, compared to $6.4 million, or 60% of revenue, in the same period last year. This improvement in margin was the result of higher utilization of the Company's laboratory capacity where costs are relatively fixed, compared to the comparable quarter in the prior year.

Operating expenses were $4.1 million for the quarter, an increase of $1.1 million over the third quarter of fiscal 2004. This increase is primarily attributable to rent on the Baltimore facility, which was previously owned, to underutilization of capacity there resulting in higher charges to administration, and to depreciation on new facilities placed in service.

Revenue for the nine months ended June 30, 2005 increased 7% to $30.1 million, compared to $28.1 million for the similar period of the prior year. The net loss for the nine months was $(137,000), or $(0.03) per diluted share, versus net income of $2,000, or $0.00 per diluted share, for the first nine months of fiscal 2004. The increase in revenues was the result of a 24% increase in service revenues and a 29% decrease in product revenues.

Cost of revenue for the current nine months was $18.9 million, or 63% of revenue, compared to $19.0 million, or 68% of revenue, in the same period last year. The higher margin experienced year-to-date is the result of better utilization of laboratory capacity in the current quarter.

The increase in operating expenses of $1.9 million to $10.4 million for the nine months was the result of the same factors cited in the current quarter.

Income before taxes improved to $163,000 for the nine months ended June 30, 2005, compared to a loss of $(73,000) in the same period of the previous year. As a result of a year-to-date operating loss in the UK for which no tax benefit was provided, net results, after provision for taxes on US income, was a loss.

Peter T. Kissinger, Chairman and CEO, said, "We saw very strong performance from our US bioanalytical laboratories in the third quarter of fiscal 2005, which brought our year-to-date results, before taxes, back to a profit. We experienced a second consecutive quarterly decline in product revenue. Sales of leading Culex products improved over the second quarter, although we did not have the major orders we had in the third quarter of fiscal 2004. Our toxicology testing operations experienced their first profitable quarter of the year, which is encouraging, and our bioanalytical laboratories ran very nearly at capacity during the quarter."

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 www.bioanalytical.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 the development 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.


                        Bioanalytical Systems, Inc.
                                     
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share amounts)
                                (Unaudited)

                                Three Months Ended    Nine Months Ended
                                     June 30,             June 30,
                                --------   --------   --------   --------
                                  2005       2004       2005       2004
                                --------   --------   --------   --------
Service revenue                 $  9,078   $  7,684   $ 23,910   $ 19,270
Product revenue                    2,226      2,948      6,226      8,789
                                --------   --------   --------   --------
   Total revenue                  11,304     10,632     30,136     28,059

Cost of service revenue            5,434      5,217     16,570     15,493
Cost of product revenue              844      1,191      2,352      3,503
                                --------   --------   --------   --------
   Total cost of revenue           6,278      6,408     18,922     18,996

Gross profit                       5,026      4,224     11,214      9,063

Operating expenses:
Selling                              718        672      1,919      1,963
Research and development             261        260        653        801
General and administrative         3,115      2,054      7,781      5,686
                                --------   --------   --------   --------
   Total operating expenses        4,094      2,986     10,353      8,450

Operating income                     932      1,238        861        613

Interest income                        2          2          7          5
Interest expense                    (250)      (306)      (782)      (720)
Other income (expense)                78         21         56         36
Gain (loss) on sale of property
 and equipment                        34        (10)        21        (10)
                                --------   --------   --------   --------

Income (loss) before income
 taxes                               796        945        163        (73)

Income taxes                        (440)      (310)      (300)        75
                                --------   --------   --------   --------
Net income (loss)               $    356   $    635   $   (137)  $      2
                                ========   ========   ========   ========

Net income (loss) per share:
   Basic                        $   0.07   $   0.13   $   (0.03) $   0.00
   Diluted                      $   0.07   $   0.13   $   (0.03) $   0.00

Weighted common and common
 equivalent shares outstanding:
   Basic                           4,871      4,870       4,870     4,857
   Diluted                         5,020      5,150       4,870     4,902

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