BASi

West Lafayette, IN, United States
West Lafayette, IN, United States
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News Article | May 15, 2017
Site: www.businesswire.com

WEST LAFAYETTE, Ind.--(BUSINESS WIRE)--Bioanalytical Systems, Inc. (NASDAQ:BASI) (“BASi” or the “Company”) today announced financial results for the second quarter and first six months of fiscal 2017. For the three months ended March 31, 2017, revenue amounted to $6,359,000, a 19% increase from $5,339,000 in the second quarter of fiscal 2016. Service revenue for the second quarter of fiscal 2017 increased 22% to $4,962,000, compared to $4,053,000 for the same period in fiscal 2016. Preclinical services revenues led the improvement due to an overall increase in the number of studies in the second quarter versus the prior year period. Other laboratory services revenues were positively impacted by higher discovery and pharmaceutical analysis revenues in the second quarter of fiscal 2017 versus the comparable period in fiscal 2016. Also, archive services revenue added $229,000 to other laboratory services revenue in the second fiscal quarter of 2017. Bioanalytical analysis revenues declined due to fewer samples received and analyzed in the second quarter of fiscal 2017 and an unfavorable mix favoring method development and validation projects during that time period, which generate lower revenue but involve more dedicated resources. Sales in our Products segment increased 9% in the second quarter of fiscal 2017 from $1,286,000 to $1,397,000 when compared to the same period in the prior fiscal year. The majority of the increase stems from higher sales of our Culex automated in vivo sampling systems and related consumables over the same period in the prior fiscal year. Gross profit increased to $2,043,000, or 32% of revenue, in the second quarter of fiscal 2017, compared to $1,316,000, or 25% of revenue, during the comparable fiscal 2016 period. The principal causes for the improvement were the increase in revenue, which led to a higher absorption of the fixed costs in our business, and a more favorable sales mix. Operating expenses for the second quarter of fiscal 2017 decreased 6% to $1,488,000 compared to $1,578,000 during the second quarter of fiscal 2016. This decrease is mainly due to lower salaries and benefits from the loss of business development and other management personnel in the second fiscal quarter of 2017 compared to the same period in fiscal 2016. These reductions were partially offset by higher consulting services. Operating income for the second quarter of fiscal 2017 amounted to $555,000 compared to an operating loss of $262,000 for the second quarter of fiscal 2016. The improvement was primarily due to higher revenue and the improved operating margins, and to a lesser extent, to decreased operating expenses. Net income for the second quarter of fiscal 2017 amounted to $417,000, or $0.05 per diluted share, compared to a net loss of $254,000, or $0.03 per diluted share for the second quarter of fiscal 2016. EBITDA for the second quarter of fiscal 2017, amounted to $937,000, compared to EBITDA of $84,000 for the second quarter of fiscal 2016. For the six months ended March 31, 2017, revenue amounted to $12,533,000 a 22% increase from $10,234,000 in the second quarter of fiscal 2016. Service revenue increased 26% in the six months ended March 31, 2017 to $10,226,000 from $8,108,000 in the first six months of fiscal 2016. The increase in preclinical services led the improvement resulting from an overall increase in the number of studies from the prior year period. Other laboratory services revenues were positively impacted by higher discovery and pharmaceutical analysis revenues in fiscal 2017 versus the comparable period in fiscal 2016. Also, archive services revenue added $237,000 to other laboratory services revenue in fiscal 2017. Bioanalytical analysis revenues decreased due to fewer samples received and analyzed in fiscal 2017 in addition to an unfavorable mix favoring method development and validation projects during this time period, which generate lower revenue but involve more dedicated resources. Sales in our Products segment increased 8% in the first six months ended March 31, 2017, from $2,126,000 to $2,307,000 when compared to the same period in the prior fiscal year. The majority of the increase stems from higher sales of our Culex automated in vivo sampling systems and related consumables over the same period in the prior fiscal year. Gross profit in the six months ended March 31, 2017 increased to $3,902,000, or 31% of revenue, compared to $2,300,000, or 22% of revenue, for the same period of the prior fiscal year. The improvement was driven by a increase in revenues which led to a higher absorption of fixed costs and a favorable change in sales mix in the Products segment. Operating expenses for the six months ended March 31, 2017 increased 5% to $3,253,000 from $3,091,000 for the comparable fiscal 2016 period. The principal reasons for the increase were the accrual for the severance for our former Chief Executive Officer, amounting to approximately $200,000, as well as higher consulting services. These items were offset in part by decreased spending for salaries and benefits, outside services and employee search costs. Operating income for the first six months of fiscal 2017 amounted to $649,000 compared to an operating loss of $791,000 for the first six months of fiscal 2016. The improvement was primarily due to higher revenue and the improved operating margins partially offset by increased operating expenses. Net income amounted to $434,000, or $0.05 per diluted share, for the first six months of fiscal 2017. Net loss amounted to $760,000, or $0.09 per diluted share, for the first six months of fiscal 2016. EBITDA was $1,417,000 for the first six months of fiscal 2017, compared to a negative EBITDA of $87,000 for the first six months of fiscal 2016. Cash provided by operating activities was $561,000 for the first six months of fiscal 2017 due in part to the improved operating income performance during the first half of the year and lower working capital levels. The Company had $419,000 in cash and cash equivalents at March 31, 2017. During the first six months of fiscal 2017, cash from operations funded higher working capital levels and capital expenditures for building improvements and equipment of approximately $152,000. The amount outstanding under the Company’s line of credit was $1,419,000 at March 31, 2017 compared to $1,358,000 at September 30, 2016. During fiscal 2016 and throughout the first six months of fiscal 2017 we have operated either in default of, or under forbearance arrangements with respect to our credit agreements with Huntington National Bank (“Huntington Bank”). Effective January 31, 2017, we entered into a Fifth Forbearance Agreement and Sixth Amendment to Credit Agreement (the “Fifth Forbearance Agreement”) with Huntington Bank. Pursuant to the Fifth Forbearance Agreement, Huntington Bank agreed to forbear from exercising its rights and remedies under the Company’s credit facility and from terminating the Company’s related swap agreement with respect to the Company’s non-compliance with applicable financial covenants under the credit agreement and any further non-compliance with such covenants until July 31, 2017. If we are unable to refinance our indebtedness before the end of the forbearance period, and were Huntington Bank to demand payment on the outstanding debt under our credit arrangements, we would have insufficient funds to satisfy that obligation. In such case, in addition to the ability to immediately demand payment of the outstanding debt under our term loan and revolving loan, Huntington Bank would have the right to exercise its security interest, to take possession of or sell the underlying collateral, to increase interest accruing on the debt, to refrain from making additional advances under the revolving loan, and to terminate our interest rate swap. We have classified the entire term loan payable to Huntington Bank and the interest rate swap agreement with Huntington Bank as current liabilities of the Company. The Company’s Board of Directors has directed management to seek alternatives that will enable the Company to repay its indebtedness to Huntington Bank in full upon the expiration of the forbearance period. The following alternatives, among others, are being evaluated: replacement financing, the potential disposition of certain assets and the possible sale of the West Lafayette building. Management has been reviewing details of all current account management and marketing programs as well as all invoicing and top-line growth initiatives. Although the Company continues to face the near term challenge of replacing its Huntington Bank debt, the operating performance for the three and six months ended March 31, 2017 is encouraging. The financial results for the three and six months ended March 31, 2017 reflect Management's initiatives aimed at growing revenue, reducing costs and generating more cash flow. The additional revenues for archive services and the recent reductions in inventory and accounts payable are examples of these initiatives. For the remainder of fiscal 2017, the entire BASi team remains committed to the Company's core priorities and is focused on seeking additional opportunities to increase revenue and profits. For example, we are exploring the use of distributor and reseller arrangements to boost sales in our products business. Additionally, we intend to increase our investment in product research and development. We anticipate making investments to increase our discovery and preclinical services revenues. We have recently welcomed the Company’s founder as a scientific advisor to the team; and we are also looking to selectively add to our scientific and business development staff. Lastly, the Board of Directors continues to weigh options and timing for hiring a new Chief Executive Officer, to fill the position vacated in November of 2016. Jill Blumhoff, BASi’s Vice President of Finance and Chief Financial Officer commented, “Our results demonstrate another very good quarter for BASi. We achieved significant profitability improvement year over year primarily due to our improved top line performance and focus on cost controls. We continue to experience strong demand for our preclinical services and steady improvement in our discovery and pharmaceutical analysis revenues. We intend to build on our positive momentum as we make progress on our strategic imperatives including steps to refinance our indebtedness with Huntington Bank, capture more cost savings where appropriate and expand our business with existing customers and add new ones. I would like to sincerely thank our employees for their continued focus on and commitment to our strategy.” This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). The non-GAAP financial measures are EBITDA for the second quarter and first six months of fiscal 2017 and 2016, respectively. EBITDA refers to a financial performance measure that excludes certain income statement line items, such as interest, taxes, depreciation, and amortization. EBITDA may also exclude certain non-cash expenses, such as stock-based compensation and the income or expense from the change in the warrant liability. The non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management, however, believes that EBITDA, when used in conjunction with the results presented in accordance with GAAP, may provide a more complete understanding of the Company's results and may facilitate a fuller analysis of the Company's results, particularly in evaluating performance from one period to another. Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of results and to illustrate the results giving effect to the non-GAAP adjustments shown in the reconciliation. Management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures 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 information 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 our financial condition, changes in the market and demand for our products and services, 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. BASi assumes no obligation to update any forward-looking statement. Actual results may vary, and could differ materially, from those anticipated, estimated, projected or expected in these forward-looking statements for a number of reasons, including, among others, the risk factors disclosed in the Company's most recent Annual Report, as filed, with the Securities and Exchange Commission.


WEST LAFAYETTE, Ind.--(BUSINESS WIRE)--Bioanalytical Systems, Inc. (NASDAQ:BASI) (“BASi” or the “Company”) today announced today that it will report financial results for the second quarter and six months ended March 31, 2017, prior to the market opening on Monday, May 15, 2017. If there are any questions after the press release is issued, please direct your comments to the investor relations contact noted in this release. 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 may contain forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to changes in the market and demand for our products and services, 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.


Hopper L.D.,BASi
ILAR Journal | Year: 2016

Data collected in vivo is essential for advising decisions on drug screening and development and basic research, and animal models are used extensively for acquiring experimental measurements. Traditionally, collection of specimens has been invasive, stressful to animal subjects, labor intensive, time-consuming and costly, and required many animals when using small models with low fluid volumes, such as rats or mice. Utilizing automated microsampling (AMS) alone or in an integrative pharmacology approach to evaluate multiple physiological, pharmacokinetic, and pharmacodynamic endpoints simultaneously in the same animal accomplishes multiple experimental goals. Use of AMS robotics and associated instrumentation can assist in achieving significant reduction and refinement of animal use. Automated robotic instrumentation for specimen collection from living animal models can now be used to provide better quality pharmacokinetic and pharmacodynamic data, reduce time, provide more data with less variability, reduce animal use, and refine animal model use to reduce pain and stress. Instrumentation in common use for automated sampling and dosing is briefly discussed. In parallel with advances in automated instrumentation, recent advances in analytical detection methods complement the use of automated technology for data and specimen collection. Methods requiring much smaller volumes can now be utilized. Microsampling (small biological samples in volumes of 5-100 μL) can facilitate reduction in animal numbers while minimizing stresses associated with excessive fluid volume removal. Innovations in automation, microsampling techniques, and analytical methods have facilitated advances in data collection that allow for more robust and accurate data, reduction in animal use, and refinement in techniques that improve animal welfare. These innovations offer opportunities for wider application in nonclinical investigations by collection of multiple data streams simultaneously from individual animals. Many benefits are achievable through the use integrative pharmacology designs utilizing AMS, including decreased time for completion of composite data collection, decreased personnel resources, lower costs, improved safety, higher quality and multiple data-sets, and improvements in aspects of the 3Rs. © The Author 2016.


The 9th GCCClosed Forum was held just prior to the 2015 Workshop on Recent Issues in Bioanalysis (WRIB) in Miami, FL, USA on 13 April 2015. In attendance were 58 senior-level participants, from eight countries, representing 38 CRO companies offering bioanalytical services. The objective of this meeting was for CRO bioanalytical representatives to meet and discuss scientific and regulatory issues specific to bioanalysis. The issues selected at this years closed forum include CAPA, biosimilars, preclinical method validation, endogenous biomarkers, whole blood stability, and ELNs. A summary of the industrys best practices and the conclusions from the discussion of these topics is included in this meeting report.


Scicinski J.,Radiorx Inc. | Oronsky B.,Radiorx Inc. | Cooper V.,BASi West Coast Operations | Taylor M.,NonClinical Safety Assessment | And 5 more authors.
Bioanalysis | Year: 2014

Background: Bioanalytical methods were required to study the novel anticancer drug, RRx-001 preclinically and for clinical pharmacokinetic analysis; however, RRx-001 quickly and completely disappeared on intravenous administration in preclinical species. Results: Quantification of RRx-001 directly or by derivatization was unsuccessful. On exposure to whole blood, RRx-001 formed the glutathione (GSH) adduct very rapidly, suggesting this metabolite as the bioanalyte. However, rapid enzymatic degradation in the blood matrix of RRx-001-GSH posed significant technical problems. Herein, we describe a novel and broadly applicable solution to stabilize GSH conjugates in blood samples by inhibiting the degrading enzyme. Liquid chromatography-tandem mass spectrometry methods for analysis of RRx-001-GSH in rat, dog and human plasma were developed and successfully validated to good laboratory practice standards. Conclusion: Extensive breakdown of RRx-001-GSH was effectively stopped by addition of the enzyme inhibitor, acivicin. The developed liquid chromatography-tandem mass spectrometry assay for RRx-001-GSH was validated for use in preclinical toxicology studies and the Phase I first-in-human clinical trial. © 2014 Future Science Ltd.


Rix P.J.,Seragon Pharmaceuticals | Vick A.,WIL Research | Attkins N.J.,Parexel International | Barker G.E.,Aires Pharmaceuticals | And 9 more authors.
Clinical Pharmacokinetics | Year: 2015

Introduction: The efficacy of nebulized sodium nitrite (AIR001) has been demonstrated in animal models of pulmonary arterial hypertension (PAH), but it was not known if inhaled nitrite would be well tolerated in human subjects at exposure levels associated with efficacy in these models.Methods: Inhaled nebulized sodium nitrite was assessed in three independent studies in a total of 82 healthy male and female subjects. Study objectives included determination of the maximum tolerated dose (MTD) and dose-limiting toxicity (DLT) under normal and mildly hypoxic conditions, and following co-administration with steady-state sildenafil, assessment of nitrite pharmacokinetics, and evaluation of the fraction exhaled nitric oxide (FENO) and concentrations of iron-nitrosyl hemoglobin (Hb(Fe)-NO) and S-nitrosothiols (R-SNO) as biomarkers of local and systemic NO exposure, respectively.Results: Nebulized sodium nitrite was well tolerated following 6 days of every 8 h administration up to 90 mg, producing significant increases in circulating Hb(Fe)-NO, R-SNO, and FENO. Pulmonary absorption of nitrite was rapid and complete, and plasma exposure dose was proportional through the MTD dosage level of 90 mg, without accumulation following repeated inhalation. At higher dosage levels, DLTs were orthostasis (observed at 120 mg) and hypotension with tachycardia (at 176 mg), but venous methemoglobin did not exceed 3.0 % at any time in any subject. Neither the tolerability nor pharmacokinetics of nitrite was impacted by conditions of mild hypoxia, or co-administration with sildenafil, supporting the safe use of inhaled nitrite in the clinical setting of PAH.Conclusion: On the basis of these results, nebulized sodium nitrite (AIR001) has been advanced into randomized trials in PAH patients. © 2014, The Author(s).


WEST LAFAYETTE, Ind.--(BUSINESS WIRE)--Bioanalytical Systems, Inc. has determined not to hold a conference call at this time as previously stated, but still plans to issue an earnings press release for the fourth quarter and twelve months ended September 30, 2016, prior to the market opening on Thursday, December 22, 2016. Bioanalytical Systems, Inc. (NASDAQ:BASI) (“BASi” or the “Company”) today announced that it will report financial results for the fourth quarter and twelve months ended September 30, 2016, prior to the market opening on Thursday, December 22, 2016. Any questions or comments may be directed to the Company contact noted above. 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 may contain forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to changes in the market and demand for our products and services, 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.


News Article | February 15, 2017
Site: www.businesswire.com

WEST LAFAYETTE, Ind.--(BUSINESS WIRE)--Bioanalytical Systems, Inc. (NASDAQ:BASI) (“BASi” or the “Company”) today announced financial results for the first quarter of fiscal 2017. For the three months ended December 31, 2016, revenue amounted to $6,174,000 a 26% increase from $4,895,000 in the first quarter of fiscal 2016. Service revenue for the first quarter of fiscal 2017 increased 30% to $5,264,000 compared to $4,055,000 for the same period in fiscal 2016. Preclinical services revenue increased due to a significant increase in the number of studies compared to the prior year period. Other laboratory services revenues were positively impacted by higher discovery and pharmaceutical analysis revenues in the first three months of fiscal 2017 versus the comparable period in fiscal 2016. Sales in our Products segment increased 8% in the first quarter of fiscal 2017 from $840,000 to $910,000 when compared to the same period in the prior fiscal year. The majority of the increase stems from higher sales of our Culex automated in vivo sampling systems and related consumables over the same period in the prior fiscal year. Gross profit increased to $1,859,000, or 30% of revenue, in the first quarter of fiscal 2017, compared to $984,000, or 20% of revenue, during the comparable fiscal 2016 period. The principal causes for the improvement were the increase in revenue, which led to a higher absorption of the fixed costs in our business, and a more favorable sales mix. Operating expenses for the first quarter of fiscal 2017 increased 17% to $1,765,000 compared to $1,513,000 during the first quarter of fiscal 2016. The principal reasons for the increase were the accrual for the severance for our former Chief Executive Officer, amounting to approximately $200,000, as well as higher consulting services related to our forbearance arrangements with Huntington Bank. These items were offset slightly by decreased spending for both outside services and employee search costs. Operating income for the first quarter of fiscal 2017 amounted to $94,000 compared to an operating loss of $529,000 for the first quarter of fiscal 2016. The improvement was primarily due to higher revenue and the improved operating margins partially offset by increased operating expenses. Net income for the first quarter of fiscal 2017 amounted to $17,000, or $0.00 per diluted share, compared to a net loss of $506,000, or $0.06 per diluted share for the first quarter of fiscal 2016. EBITDA was positive for the first quarter of fiscal 2017, amounting to $480,000, compared to a negative EBITDA for the first quarter of fiscal 2016 of $171,000. Cash provided by operating activities was $1,009,000 for the first quarter of fiscal 2017 due in part to the improved operating income performance during the first quarter and lower working capital levels. The Company had $287,000 in cash and cash equivalents at December 31, 2016. During the first quarter of fiscal 2017, cash from operations funded capital expenditures for building improvements and equipment of approximately $105,000 and assisted in lowering the Company’s line of credit from $1,358,000 at September 30, 2016 to $597,000 at December 31, 2016. During fiscal 2016 and throughout the first quarter of fiscal 2017 we have operated either in default of, or under forbearance arrangements with respect to, our credit agreements with Huntington National Bank (“Huntington Bank”). Effective January 31, 2017, we entered into a Fifth Forbearance Agreement and Sixth Amendment to Credit Agreement (the “Fifth Forbearance Agreement”) with Huntington Bank. Pursuant to the Fifth Forbearance Agreement, Huntington Bank agreed to forbear from exercising its rights and remedies under the Company’s credit facility and from terminating the Company’s related swap agreement with respect to the Company’s non-compliance with applicable financial covenants under the credit agreement and any further non-compliance with such covenants until July 31, 2017. If we are unable to refinance our indebtedness before the end of the forbearance period, and were Huntington Bank to demand payment on the outstanding debt under our credit arrangements, we would have insufficient funds to satisfy that obligation. In such case, in addition to the ability to immediately demand payment of the outstanding debt under our term loan and revolving loan, Huntington Bank would have the right to exercise its security interest, to take possession of or sell the underlying collateral, to increase interest accruing on the debt, to refrain from making additional advances under the revolving loan, and to terminate our interest rate swap. We have classified the entire term loan payable to Huntington Bank and the interest rate swap agreement with Huntington Bank as current liabilities of the Company. The Company’s Board of Directors has directed management to seek alternatives that will enable the Company to repay its indebtedness to Huntington Bank in full upon the expiration of the forbearance period. The Company continues to explore initiatives to address solutions to our credit issues, including but not limited to, the potential disposition of certain of its assets as well as a possible sale and leaseback of the building in West Lafayette, Indiana. Management has been reviewing details of all current account management, pricing strategies and marketing programs as well as invoicing and top line growth initiatives around focused strength areas. Management has been, and continues to be actively engaged in more effectively controlling operating costs in the short term, as they strive for long term stabilization and growth. Similarly, the Board of Directors continues to weigh options for replacing the Chief Executive Officer. Jill Blumhoff, BASi’s Vice President of Finance and Chief Financial Officer commented, “During the first quarter, revenues grew more than 25% compared to the same period of the prior year and nearly 20% sequentially from the fourth quarter of fiscal 2016. As we manage the challenges to rectify our liquidity position, the entire team at BASi remains focused on our core priorities including opportunities to refine our operations, capture more cost savings where appropriate and expand our business with existing customers and add new ones. Our performance in the first quarter reflects a significant improvement in our reported revenue and profitability versus recent trends. I sincerely want to thank our employees across the entire organization for their dedication to helping us achieve the results this quarter.” This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). The non-GAAP financial measures are EBITDA for the first quarters of fiscal 2017 and 2016. EBITDA refers to a financial performance measure that excludes certain income statement line items, such as interest, taxes, depreciation, and amortization. EBITDA may also exclude certain non-cash expenses, such as stock-based compensation and the income or expense from the change in the warrant liability. The non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management, however, believes that EBITDA, when used in conjunction with the results presented in accordance with GAAP, may provide a more complete understanding of the Company's results and may facilitate a fuller analysis of the Company's results, particularly in evaluating performance from one period to another. Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of results and to illustrate the results giving effect to the non-GAAP adjustments shown in the reconciliation. Management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures 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 information 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 our financial condition, changes in the market and demand for our products and services, 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. BASi assumes no obligation to update any forward-looking statement. Actual results may vary, and could differ materially, from those anticipated, estimated, projected or expected in these forward-looking statements for a number of reasons, including, among others, the risk factors disclosed in the Company's most recent Annual Report, as filed, with the Securities and Exchange Commission.


News Article | December 22, 2016
Site: www.businesswire.com

WEST LAFAYETTE, Ind.--(BUSINESS WIRE)--Bioanalytical Systems, Inc. (NASDAQ:BASI) (“BASi” or the “Company”) today announced financial results for the full fiscal year and fourth quarter ended September 30, 2016. For the twelve months ended September 30, 2016, revenues decreased 9.9% to $20,441,000 from $22,698,000 in fiscal 2015. Service revenue for fiscal 2016 decreased 10.4% to $15,924,000 compared to $17,768,000 for fiscal 2015. Our Service revenue was negatively impacted by fewer bioequivalence studies in fiscal 2016 versus fiscal 2015, as well as fewer samples received and analyzed in fiscal 2016. Service revenue was also negatively impacted by the increase in method development and validation projects, which generate lower revenue but involve more dedicated resources. These declines were partially offset by an increase in our preclinical services revenue in fiscal 2016, due to an increase in the number of studies from the prior year. Product revenue decreased 8.4% for fiscal 2016 to $4,517,000 as compared to $4,930,000 for fiscal 2015. Results in fiscal 2016 were impacted by lower sales of analytical and Culex® instruments as compared to the prior fiscal year. Gross profit for fiscal 2016 decreased to $4,425,000, or 21.6% of revenue, compared to $7,489,000, or 33.0% of revenue, for the prior fiscal year. The principal cause for the decrease was the decline in services revenue which led to lower absorption of the fixed costs in our business. Operating expenses for fiscal 2016 increased to $7,465,000 compared to $6,580,000 in fiscal 2015. The increase in operating expenses year-over-year resulted primarily from a goodwill impairment charge of $971,000 in fiscal 2016 and a mediation settlement which reduced operating expenses by $605,000, net of legal expenses, in fiscal 2015. This increase was partially offset by $286,000 in additional building rental income in fiscal 2016 compared to one year ago as well as the recognition of a reserve for potential bad debt amounting to $505,000 in fiscal 2015 that did not recur in fiscal 2016. Net loss for fiscal 2016 amounted to $3,230,000, or $0.40 per diluted share, compared to net income of $1,089,000, or $0.07 per diluted share, for fiscal 2015. Adjusted EBITDA for fiscal 2016 was negative $615,000 as compared to a positive Adjusted EBITDA for fiscal 2015 of $2,402,000. For the three months ended September 30, 2016, revenue was $5,154,000 a 3.6% increase from $4,977,000 in the fourth quarter of fiscal 2015. Service revenue for the fourth quarter of fiscal 2016 increased 5.3% to $4,043,000 compared to $3,839,000 for the same period in fiscal 2015. This increase was due primarily to higher Preclinical services revenues as a result of new orders and projects. Sales in our Product segment decreased 2.4% in the fourth quarter of fiscal 2016 to $1,111,000 from $1,138,000 in the same period in fiscal 2015. The majority of the decrease stems from lower instrument sales from our BASi Culex® automated in-vivo sampling line versus the same period in fiscal 2015. Gross profit decreased to $952,000, or 18.5% of revenue, in the fourth quarter of fiscal 2016, compared to $1,293,000, or 26.0% of revenue, during the comparable fiscal 2015 period. The principal cause for the decrease was the higher scientific professional services incurred in the fourth quarter of fiscal 2016 due to the timing of certain studies. Operating expenses for the fourth quarter of fiscal 2016 increased to $2,836,000 compared to $2,088,000 during the fourth quarter of fiscal 2015. The principal reason for the increase was a goodwill impairment charge of $971,000 in the fourth quarter of fiscal 2016. This charge was partially offset by the recognition of a reserve for potential bad debt amounting to $505,000 in the fourth quarter of fiscal 2015 that did not recur in fiscal 2016. Net loss for the fourth quarter of fiscal 2016 amounted to $2,037,000, or $0.25 per diluted share, compared to a net loss of $721,000, or $0.09 per diluted share, for the fourth quarter of fiscal 2015. Adjusted EBITDA was negative $526,000 for the fourth quarter of fiscal 2016, compared to a negative Adjusted EBITDA of $439,000 for the fourth quarter of fiscal 2015. Sources and Uses of Cash Cash provided by operating activities was $1,060,000 for fiscal 2016, a decrease from $2,104,000 in fiscal 2015, due to the operating loss in fiscal 2016, offset in part by slightly lower working capital levels. The Company had $386,000 in cash and cash equivalents at September 30, 2016. During fiscal 2016, proceeds from borrowings net of repayments, and cash on hand funded capital expenditures for plant, machinery and equipment of approximately $1,256,000. During fiscal 2016 we have operated either in default of, or under forbearance arrangements with respect to, our credit agreements with Huntington Bank. Effective October 31, 2016, we entered into a Fourth Forbearance Agreement and Fifth Amendment to Credit Agreement (the “Fourth Forbearance Agreement”) with Huntington Bank. Pursuant to the Fourth Forbearance Agreement, Huntington Bank agreed to forbear from exercising its rights and remedies under the Company’s credit facility and from terminating the Company’s related swap agreement with respect to the Company’s non-compliance with applicable financial covenants under the credit agreement and any further non-compliance with such covenants until January 31, 2017. If we are unable to refinance our indebtedness before the end of the forbearance period, and were Huntington Bank to demand payment on the outstanding debt under our credit arrangements, we would have insufficient funds to satisfy that obligation. In such case, in addition to the ability to immediately demand payment of the outstanding debt under our term loan and revolving loan, Huntington Bank would have the right to exercise its security interest, to take possession of or sell the underlying collateral, to increase interest accruing on the debt, to refrain from making additional advances under the revolving loan, and to terminate our interest rate swap. The Company’s Board of Directors has directed management to seek alternatives that will enable the Company to repay its indebtedness to Huntington Bank in full upon the expiration of the forbearance period. The Company continues to explore initiatives to address solutions to our credit issues, including but not limited to, the potential disposition of certain of its assets as well as a possible sale and leaseback of the building in West Lafayette, Indiana. Management has been reviewing details of all current account management, pricing strategies and marketing programs as well as invoicing and top line growth initiatives around focused strength areas. Management has been, and continues to be actively engaged in more effectively controlling operating costs in the short term, as they strive for long term stabilization and growth. As of May 11, 2016, the remaining unexercised Class A warrants from our 2011 public offering have expired. The liability was reduced to zero in our third fiscal quarter of 2016. As a result, there were no additional charges to the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) following the third quarter of fiscal 2016. Jill Blumhoff, BASi’s Vice President of Finance and Chief Financial Officer commented, “Our performance in the fourth quarter reflects the recent trends we have been experiencing. There is no denying that we have encountered many challenges during the course of this fiscal year. However, we remain focused on positioning our Company for success by concentrating on rectifying our liquidity position as well as expanding market share and attracting and retaining superior talent. The management team continues to analyze liquidity alternatives and the factors that impacted our fiscal 2016 results and how they may impact our outlook for the coming fiscal year, and is working with the Board to consider what steps we may take to address these issues.” This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). The non-GAAP financial measures are Adjusted EBITDA for the full fiscal year and fourth quarter ended September 30, 2016 and 2015, respectively. Adjusted EBITDA refers to a financial performance measure that excludes certain income statement line items, such as interest, taxes, depreciation, and amortization. Adjusted EBITDA may also exclude certain non-cash expenses, such as stock-based compensation and the income or expense from the change in the warrant liability. The non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management, however, believes that Adjusted EBITDA, when used in conjunction with the results presented in accordance with GAAP, may provide a more complete understanding of the Company's results and may facilitate a fuller analysis of the Company's results, particularly in evaluating performance from one period to another. Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of results and to illustrate the results giving effect to the non-GAAP adjustments shown in the reconciliation. Management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. 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 information 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 our financial condition, changes in the market and demand for our products and services, 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. BASi assumes no obligation to update any forward-looking statement. Actual results may vary, and could differ materially, from those anticipated, estimated, projected or expected in these forward-looking statements for a number of reasons, including, among others, the risk factors disclosed in the Company's most recent Annual Report, as filed, with the Securities and Exchange Commission. Adjusted EBITDA - Earnings before interest, taxes, depreciation, amortization, stock option expenses, impairment charges and the change in the fair value of warrant liability.


News Article | December 20, 2016
Site: www.businesswire.com

WEST LAFAYETTE, Ind.--(BUSINESS WIRE)--Bioanalytical Systems, Inc. (NASDAQ:BASI) (“BASi” or the “Company”) has announced the appointment of Alan Loch as Director of Business Development reporting to BASi Vice President of Preclinical Services, Philip Downing. Mr. Downing remarked, “Alan brought his broad experience to BASi in February 2014 as Manager of Business Development. Since that time, he has made great strides with significantly expanding our client base with key sponsors from the East and West Coasts. Alan’s leadership ability and proven track record in increasing revenue make him the ideal candidate to lead the Business Development division for BASi.” With over twenty years of experience in the drug discovery and development industry, Mr. Loch has held various leadership positions in Sales, Marketing, and Client Services. During his tenure at Covance, Mr. Loch led a Sales and Marketing team that delivered average annual revenue growth rates that far exceeded historic rates and his division was awarded the prestigious designation of “Division of Year” twice. Mr. Loch then moved on to various business development leadership roles at Gene Logic, Bridge, AVANZA Laboratories and SNBL USA. Mr. Loch holds an MBA in International Business from St. Joseph’s University in Philadelphia, PA, an MS in Computer Science from Villanova University in Villanova, PA and a BS in Accounting & Information Systems from Kings College in Wilkes Barre, PA. 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. BASi 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.

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