SOURCE: BASi (Bioanalytical Systems, Inc.)

December 24, 2008 16:00 ET

Bioanalytical Systems, Inc. Reports Earnings From Continuing Operations

WEST LAFAYETTE, IN--(Marketwire - December 24, 2008) - Bioanalytical Systems, Inc. (NASDAQ: BASI) today reported financial results for the three months and fiscal year ended September 30, 2008.

The Company had previously announced the June 30, 2008 sale of its clinic in Baltimore, Maryland and the resulting exit from the Phase I clinical trials business. The presentation of the Company's financial results reflects the discontinuation of those operations.

For continuing operations, revenue in the fourth quarter of fiscal 2008 decreased 2.1% to $9.4 million compared to $9.6 million for the same period in fiscal 2007. A net loss from continuing operations for the fourth quarter of fiscal 2008 was $1.2 million, or $0.23 per basic and diluted share, compared to net income of $208,000, or $0.04 per basic and diluted share, for the same period in fiscal 2007.

For the twelve months of fiscal 2008, revenue from continuing operations in fiscal 2008 increased 4.8% to $41.7 million compared to $39.8 million for fiscal 2007. Net income from continuing operations for fiscal 2008 was $275,000, or $0.06 per basic and diluted share, compared to net income of $1.6 million, or $0.32 per basic and diluted share for fiscal 2007.

The net income from discontinued operations was $121,000, or $0.02 per basic and diluted share, in the quarter ended September 30, 2008 compared to a net loss of $411,000, or $0.08 per basic and diluted share, in the same period last year. This resulted in a net loss from all operations in the fourth quarter of $1.0 million, or $0.21 per basic and diluted share, compared to a net loss in the same quarter last year of $203,000, or $0.04 per basic and diluted share.

The net loss from discontinued operations was $1.7 million, or $0.35 per basic and diluted share, in fiscal 2008 compared to a net loss of $646,000, or $0.13 per basic and diluted share, in fiscal 2007. This resulted in a net loss from all operations in the current year of $1.4 million, or $0.29 per basic and diluted share, compared to net income in the prior year of $926,000, or $0.19 per basic and diluted share.

Michael Cox, Chief Financial Officer, stated, "The past fiscal year was one of significant change for us, both in our management team and in our operations. In the final months of the year, we disposed of a significant operation that had produced consistent losses for us. We replaced senior managers in two key positions in the organization. In the fourth quarter, we experienced several delayed projects, which negatively impacted our revenue. We also made the decision to abandon several patents which had not been incorporated into products and incurred additional marketing costs to improve our recognition with clients. We believe we serve a market that will continue to invest in new product development, employing our services, but we are anxious about the impacts the current economic conditions will have on our customers and our business."

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 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.

                  CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)

(in thousands, except  per share    Three Months Ended  Twelve Months Ended
 amounts)                             September 30,        September 30,
                                    ------------------  ------------------
                                      2008      2007      2008      2007
                                    --------  --------  --------  --------
Service revenue                     $  7,268  $  7,206  $ 32,921  $ 30,559
Product revenue                        2,116     2,405     8,776     9,194
                                    --------  --------  --------  --------
             Total revenue             9,384     9,611    41,697    39,753

Cost of service revenue                5,593     5,039    22,941    21,676
Cost of product revenue                  819     1,017     3,423     3,909
                                    --------  --------  --------  --------
             Total cost of revenue     6,412     6,056    26,364    25,585

Gross profit                           2,972     3,555    15,333    14,168
Operating expenses:
      Selling                          1,271       745     3,912     2,782
      Research and development           198       213       781       881
      General and administrative       2,198     1,795     7,822     6,855
      Loss on sale of property and
       equipment                          17        31        24       165
                                    --------  --------  --------  --------
              Total operating
               expenses                3,684     2,784    12,539    10,683

Operating income (loss)                 (712)      771     2,794     3,485

  Interest income                        ---        35        29        87
  Interest expense                      (304)     (264)   (1,006)     (981)
  Other income                             1        (1)        6         3
                                    --------  --------  --------  --------
Income (loss) from continuing
 operations before income taxes       (1,015)      541     1,823     2,594

Income taxes                             136       333     1,548     1,022
                                    --------  --------  --------  --------
Net income (loss) from continuing
 operations                         $ (1,151) $    208  $    275  $  1,572

Discontinued Operations
  Loss from discontinued operations
   before income taxes              $    (51) $   (689) $ (2,811) $ (1,095)
  Loss on disposal                       (43)      ---      (474)      ---
  Tax benefit                            215       278     1,574       449
                                    --------  --------  --------  --------
Net income (loss) from discontinued
 operations after income taxes      $    121  $   (411) $ (1,711) $   (646)
                                    --------  --------  --------  --------

Net income (loss)                   $ (1,030) $   (203) $ (1,436) $    926
                                    ========  ========  ========  ========

Basic net income (loss) per share:
  Net income (loss) per share from
   continuing operations            $  (0.23) $   0.04  $   0.06  $   0.32
  Net income (loss) per share from
   discontinued operations              0.02     (0.08)    (0.35)    (0.13)
                                    --------  --------  --------  --------
       Basic net income (loss) per
        share                       $  (0.21) $  (0.04) $  (0.29) $   0.19
                                    ========  ========  ========  ========
Diluted net income (loss) per share:
  Net income (loss) per share from
   continuing operations            $  (0.23) $   0.04  $   0.06  $   0.32
  Net income (loss) per share from
   discontinued operations              0.02     (0.08)    (0.35)    (0.13)
                                    --------  --------  --------  --------
       Diluted net income (loss)
        per share                   $  (0.21) $  (0.04) $  (0.29) $   0.19
                                    ========  ========  ========  ========

Weighted common shares outstanding:
       Basic                           4,914     4,909     4,914     4,909
       Diluted                         4,914     4,982     4,968     4,960

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