Shares of Bioanalytical Systems Inc. (NASDAQ: BASI), a contract research company providing drug discovery and development services, have surged in trading today after the company announced its financial results for the third quarter of fiscal 2013. The company returned to profitability in the third quarter as it benefited from a higher gross margin and lower operating expenses.
BASI reported third-quarter operating income of $438,000, compared to an operating loss of $540,000 reported for the same period in the previous year. This was despite the fact that BASI’s revenue for the third quarter of 2013 fell from last year.
For the quarter, BASI reported revenue of $5.6 million, compared to $7.186 million reported for the same period in the previous year. On a sequential basis though, the company’s revenue rose. In the previous quarter, the company had reported revenue of $5.156 million. BASI’s service revenue for the quarter stood at $4.156 million, down 20.1% from the same period in the previous year. On a sequential basis, service revenue rose. Service revenue in the previous quarter stood at $3.667 million. Product revenue fell 27.3% on a year-over-year basis to $1.444 million. The decline was mainly due to lower sales of the company’s Culex automated sampling systems.
The significant improvement in BASI’s bottom-line was mainly due to higher gross margin. For the quarter, the company reported gross margin of 36.3%, compared to 28.7% reported for the same period in the previous year. The company’s bottom-line also benefited from a 19.3% reduction in operating expenses.
Net income for the quarter stood at $576,000, or $0.08 per basic share and $0.07 per diluted share. For the same period in the previous year, the company had posted a net loss of $246,000, or $0.03 per basic and diluted share.
Jacqueline Lemke, President, CEO and CFO of Bioanalytical Systems, said that each of the company’s critical operating metrics, including revenue, gross margin, operating income and cash flow, improved sequentially in the third quarter compared to this year’s second quarter. Lemke noted that on the product side, as previously announced, the company is collaborating with Pinnacle Technology to create a better way to monitor glucose and with Data Sciences International to add value to its Celux system. Lemke believes that the company’s recent contract to provide IND-enabling safety and toxicology studies for NanoViricides Inc. and the preferred provider agreement with G1 Therapeutics provide a solid foundation for generating long-term growth and profitability BASI is striving for.
BASI shares have surged in trading today as investors digested the company’s quarterly results. At last check, the stock was trading 32.65% higher at $1.95 on above average volume of 355,515. BASI shares struck a 52-week high of $2.07 earlier in the day.
BASI shares have broken through some key technical levels as a result of the rally today. The stock is expected to face resistance at around $2. If it breaks through this level then the upward trend in BASI shares could continue.
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BASI reported third-quarter operating income of $438,000, compared to an operating loss of $540,000 reported for the same period in the previous year. This was despite the fact that BASI’s revenue for the third quarter of 2013 fell from last year.
For the quarter, BASI reported revenue of $5.6 million, compared to $7.186 million reported for the same period in the previous year. On a sequential basis though, the company’s revenue rose. In the previous quarter, the company had reported revenue of $5.156 million. BASI’s service revenue for the quarter stood at $4.156 million, down 20.1% from the same period in the previous year. On a sequential basis, service revenue rose. Service revenue in the previous quarter stood at $3.667 million. Product revenue fell 27.3% on a year-over-year basis to $1.444 million. The decline was mainly due to lower sales of the company’s Culex automated sampling systems.
The significant improvement in BASI’s bottom-line was mainly due to higher gross margin. For the quarter, the company reported gross margin of 36.3%, compared to 28.7% reported for the same period in the previous year. The company’s bottom-line also benefited from a 19.3% reduction in operating expenses.
Net income for the quarter stood at $576,000, or $0.08 per basic share and $0.07 per diluted share. For the same period in the previous year, the company had posted a net loss of $246,000, or $0.03 per basic and diluted share.
Jacqueline Lemke, President, CEO and CFO of Bioanalytical Systems, said that each of the company’s critical operating metrics, including revenue, gross margin, operating income and cash flow, improved sequentially in the third quarter compared to this year’s second quarter. Lemke noted that on the product side, as previously announced, the company is collaborating with Pinnacle Technology to create a better way to monitor glucose and with Data Sciences International to add value to its Celux system. Lemke believes that the company’s recent contract to provide IND-enabling safety and toxicology studies for NanoViricides Inc. and the preferred provider agreement with G1 Therapeutics provide a solid foundation for generating long-term growth and profitability BASI is striving for.
BASI shares have surged in trading today as investors digested the company’s quarterly results. At last check, the stock was trading 32.65% higher at $1.95 on above average volume of 355,515. BASI shares struck a 52-week high of $2.07 earlier in the day.
BASI shares have broken through some key technical levels as a result of the rally today. The stock is expected to face resistance at around $2. If it breaks through this level then the upward trend in BASI shares could continue.
View to Original post :- Click here
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