SOURCE: BASi (Bioanalytical Systems, Inc.)

August 11, 2008 17:12 ET

Bioanalytical Systems, Inc. Reports Earnings From Continuing Operations

WEST LAFAYETTE, IN--(Marketwire - August 11, 2008) - Bioanalytical Systems, Inc. (NASDAQ: BASI) today reported financial results for its third quarter and nine months of fiscal 2008, ending June 30, 2008. The Company had previously announced the June 30, 2008 sale of its clinic in Baltimore, Maryland and the resulting discontinuance of its Phase I clinical trials business.

For continuing operations, revenue in the third quarter increased 5.4% to $11.4 million compared to $10.9 million for the quarter ended June 30, 2007. Net income from continuing operations for the third quarter was $407,000, or $0.08 per basic and diluted share, compared to net income of $567,000, or $0.12 and $0.11 per basic and diluted share, respectively, for the third quarter of fiscal 2007.

For the nine months ended June 30, 2008, revenue increased 7.2% to $32.3 million compared to $30.1 million for the nine months ended June 30, 2007. Net income from continuing operations for the nine months of fiscal 2008 was $1.4 million, or $0.29 per basic and diluted share, compared to net income from continuing operations of $1.4 million, or $0.28 per basic and diluted share for fiscal 2007.

The net loss from discontinued operations was $661,000, or $0.13 per basic and diluted share, in the quarter ended June 30, 2008 compared to a net loss of $118,000, or $0.03 and $0.02 per basic and diluted share, respectively, in the same period last year. This resulted in a net loss from all operations in the current quarter of $254,000, or $0.05 per basic and diluted share, compared to net income in the same quarter last year of $449,000, or $0.09 per basic and diluted share. For the nine months ended June 30, 2008, net loss was $406,000, or $0.08 per basic and diluted share, compared to net income of $1.1 million in the comparable period of the prior year, or $0.23 per basic and diluted share.

Michael Cox, Chief Financial Officer, stated, "With the strategic decision to sell our only Phase I clinic in June, we will be able to focus on continuing operations and to stress profitable operations. While the current quarter had a slight decrease in net income from continuing operations compared to a very strong quarter in the same period last year, our nine month results showed a 38% increase in pre-tax income from continuing operations compared to last year. We also increased our cash flow from continuing operations for the nine-month period from $3.4 million to $4.1 million. We are very encouraged by these results from our continuing operations."

About Bioanalytical Systems, Inc.

BASi provides 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.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, 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.

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                (in thousands, except per-share amounts)

                                    Three Months Ended  Nine Months Ended
                                         June 30,            June 30,
                                    ------------------  ------------------
                                      2008      2007      2008      2007
                                    --------  --------  --------  --------
Service revenue                     $  9,068  $  8,937  $ 25,653  $ 23,353
Product revenue                        2,379     1,928     6,660     6,789
                                    --------  --------  --------  --------
             Total revenue            11,447    10,865    32,313    30,142

Cost of service revenue                6,240     5,930    17,348    16,637
Cost of product revenue                  891       852     2,604     2,892
                                    --------  --------  --------  --------
             Total cost of revenue     7,131     6,782    19,952    19,529

Gross profit                           4,316     4,083    12,361    10,613
Operating expenses:
      Selling                            975       687     2,641     2,037
      Research and development           212       212       583       668
      General and administrative       1,953     1,781     5,624     5,060
      (Gain) loss on sale of
       property and equipment             (1)      134         7       134
                                    --------  --------  --------  --------
             Total operating expenses  3,139     2,814     8,855     7,899

Operating income                       1,177     1,269     3,506     2,714

   Interest income                       ---        28        29        52
   Interest expense                     (251)     (245)     (702)     (717)
   Other income                            1       ---         5         4
                                    --------  --------  --------  --------
Income from continuing operations
 before income taxes                     927     1,052     2,838     2,053

Income taxes                             520       485     1,412       689
                                    --------  --------  --------  --------
Net income from continuing
 operations                         $    407  $    567  $  1,426  $  1,364

Discontinued Operations
   Loss from discontinued operations
    before income taxes             $   (829) $   (144) $ (2,760) $   (406)
   Loss on disposal                     (431)      ---      (431)      ---
   Tax benefit                           599        26     1,359       171
                                    --------  --------  --------  --------
Net loss from discontinued
 operations after income taxes      $   (661) $   (118) $ (1,832) $   (235)
                                    --------  --------  --------  --------

Net income (loss)                   $   (254) $    449  $   (406) $  1,129
                                    ========  ========  ========  ========

Basic net income (loss) per share:
  Net income per share from
   continuing operations            $   0.08  $   0.12  $   0.29  $   0.28
  Net loss per share from
   discontinued operations             (0.13)    (0.03)    (0.37)    (0.05)
                                    --------  --------  --------  --------
       Basic net income (loss) per
        share                       $  (0.05) $   0.09  $  (0.08) $   0.23
                                    ========  ========  ========  ========
Diluted net income (loss) per
 share:
  Net income per share from
   continuing operations            $   0.08  $   0.11  $   0.29  $   0.28
  Net loss per share from
   discontinued operations             (0.13)    (0.02)    (0.37)    (0.05)
                                    --------  --------  --------  --------
       Diluted net income (loss)
        per share                   $  (0.05) $   0.09  $  (0.08) $   0.23
                                    ========  ========  ========  ========

Weighted common shares outstanding:
       Basic                           4,914     4,909     4,913     4,908
       Diluted                         4,939     4,976     4,979     4,952

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