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

February 16, 2010 | About:
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10qk

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Bioanalytical Systems Inc. (BASI) filed Quarterly Report for the period ended 2009-12-31.

Bioanalytical Systems Inc. has a market cap of $3.83 million; its shares were traded at around $0.78 with and P/S ratio of 0.12.

Highlight of Business Operations:

Our Service revenue decreased 19.7% to $4,811 in the current quarter compared to $5,987 for the prior year period primarily as a result of lower bioanalytical analysis and toxicology revenues. Our bioanalytical analysis revenues decreased $778 (a 22.8% decline from the first quarter of fiscal 2009), mainly due to study delays by clients and decreases in new bookings. Our Oregon facility experienced the majority of the decline in bioanalytical analysis revenues, or $621. Likewise, our toxicology revenues declined in the first three months of fiscal 2010 from the prior fiscal year period by $307, or 16.4%. Study delays and cancellations contributed to the decline for the toxicology group as well. Pharmaceutical analysis revenues also experienced a decline in revenues for the first three months of fiscal 2010 compared to the same period in fiscal 2009 of $140, or 23.3%, mainly due to decreases in new bookings.

Sales in our Products segment decreased 25.0% in the current quarter from $2,089 to $1,566 when compared to the same period in the prior year. The majority of the decrease stems from sales of both our Culex automated in vivo sampling systems, which declined $211, or 23.1%, and our mature, analytical instruments, which declined $302, or 32.5%. We believe this decline is primarily the result of the continued reduction in research and development and capital spending by our customers as part of their overall cost savings initiatives.

Net cash provided by continuing operating activities was $242 for the three months ended December 31, 2009 compared to $265 for the three months ended December 31, 2008. The decrease in cash provided by continuing operating activities in the current fiscal quarter partially results from decreases in earnings from continuing operations as well as a decrease in accrued expenses of $526. These were partially offset by a decrease in accounts receivable of $1,437 as a result of the decline in sales. Included in operating activities for fiscal 2010 are non-cash charges of $607 for depreciation and amortization and $89 for employee stock option expense. The impact on operating cash flow of other changes in working capital was not material.

Financing activities used $509 in the first three months of fiscal 2010 as compared to $670 used for the first three months of fiscal 2009. The main use of cash in the first quarter of fiscal 2010 was for long term debt and capital lease payments of $319, as well as net payments on our line of credit of $190. In the first quarter of fiscal 2009, we had long term debt and capital lease payments of $294, as well as net payments on our line of credit of $376.

We have notes payable to Regions aggregating approximately $8,700 and a $3,000 line of credit with Entrepreneur Growth Capital LLC (EGC). The EGC line of credit is subject to availability limitations that may substantially reduce or eliminate our borrowing capacity at any time.. Regions notes payable include three outstanding mortgages on our facilities in West Lafayette and Evansville, Indiana, which total $7,403. Two of the mortgages mature in November 2012 with an interest rate fixed at 7.1%, while the other matures in February 2011 with an interest rate of 6.1%. In addition to the mortgages, we also have a note payable with Regions totaling $1,184, maturing December 18, 2010. The annual interest rate on this term loan is equal to 6.1%. Monthly payments are $9 plus interest. The loan is collateralized by real estate at our West Lafayette and Evansville, Indiana locations.

Based on our current business activities and cash on hand, we expect to borrow on our revolving credit facility in fiscal 2010 to finance working capital. To conserve cash, we instituted a freeze on non-essential capital expenditures. As of December 31, 2009, we had $3,000 of total borrowing capacity with the PNC line of credit, of which $1,569 was outstanding, and $524 of cash on hand.

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