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Bioanalytical Systems Inc. Reports Operating Results (10-Q)

May 18, 2009 | About:

Bioanalytical Systems Inc. (BASI) filed Quarterly Report for the period ended 2009-03-31.

Bioanalytical Systems Inc. is a contract research organization providing research and development resources to many of the leading pharmaceutical medical device and biotechnology companies in the world. The company offers an efficient variable-cost alternative to its clients' internal product development compliance and quality control programs. The company provides a broad array of value-added services and products focused on chemical analysis allowing its clients to perform their research and development functions either ``in-house`` or at the company. Bioanalytical Systems Inc. has a market cap of $7.37 million; its shares were traded at around $1.5 with and P/S ratio of 0.18.

Highlight of Business Operations:

Our Service revenue decreased 37.8% to $5,322 in the current quarter compared to $8,550 for the prior year period primarily as a result of decreases in bioanalytical analysis and toxicology revenues. Our bioanalytical analysis revenues decreased $1,409, a 29.8% decrease from the second quarter of fiscal 2008, mainly due to study delays by clients and decreases in new bookings. The UK facility experienced a significant portion of the decline in bioanalytical analysis revenues, or $680. Toxicology revenues decreased $1,274 or 44.1% over the prior year period. Study delays and cancellations contributed to the decline for the toxicology group as well.

Sales in our Products segment decreased slightly from $1,751 to $1,744. The small variance stems from the product mix sold during the quarter. Sales of our Culex automated in vivo sampling systems increased $58 or 8.6% while sales of our more mature analytical products declined $149 or 17.2% over the same period last year.

General and administrative expenses for the current quarter increased 9.6% to $2,030 from $1,853 for the prior year period. The $177 increase is mainly due to the foreign currency decline of the pound sterling relative to the U.S. dollar.

Our Service revenue decreased 31.8% to $11,310 in the first six months compared to $16,584 for the prior year period primarily as a result of decreases in bioanalytical analysis and toxicology revenues. Our bioanalytical analysis revenues decreased $2,215, a 24.8% decrease from the same period in fiscal 2008, due to study delays by clients and decreases in new bookings during the current fiscal year. Toxicology revenues decreased $2,253, or 39.3%, over the prior year period. Study delays, cancellations and a decline in new orders contributed to the decline for the toxicology group as our customers react to the global recession and financial crisis.

Sales in our Products segment decreased 10.5% from $4,281 to $3,833 when compared to the same period in the prior year. The majority of the decrease stems from sales of our Culex automated in vivo sampling system, which declined $747, or 31.2%. Partially offsetting the decline was an increase in sales of our more mature analytical products of $81 or 5.1% over the same period last year.

Net cash provided by continuing operating activities was $461 for the six months ended March 31, 2009 compared to $2,267 for the six months ended March 31, 2008. The decrease in cash provided by continuing operating activities in the current fiscal year partially results from a decrease in earnings from continuing operations as well as a decrease in customer advances of $627. These were partially offset by a decrease in accounts receivable of $3,297 as a result of the decline in sales. Also included in operating activities for the first six months of fiscal 2009 is the non-cash loss of $131 recorded to reflect the fair value of our interest rate swaps. The impact on operating cash flow of other changes in working capital was not material.

Read the The complete Report

Rating: 4.0/5 (2 votes)

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