Abaxis CEO Discusses F2Q2011 Results - Earnings Call Transcript
Great, thank you Joe, and good afternoon everybody. I will review the accomplishments and the challenges for Q2 2011 and some of the goals for Q3. After my short presentation, I’ll ask Marty Mulroy, our VP of North American Vet Sales and Marketing and Brenton Hanlon, our VP of North American Medical Sales and Marketing to give an update on their respective businesses, and then we’ll take questions.
Q2 was not only another record sales quarter but also a quarter where we have made significant progress in completing some of our manufacturing improvements with the goal of hitting $2 disc cost. Our first and four new automation lines is in production and we’ll now enter the optimization phase in Q3. The end result will be lower disc cost due to improved quality, due to less handling of the discs and some of the key steps we’re fully automating our priming, staking and deep bidding (ph). Once this is completed, we’ll be fully automated which will lead to reduced costs going forward.
We also completed the design for adding a new larger (inaudible) which will allow us to more than double our capacity for bead production to about $150 million beads per quarter. And due to a surge in our shipping of direct orders, we are adding an automated bar code and freight selection system to only the low cost shipper will be selected for a particular order.While disinvestment in factory improvements and increased shipping cost was a drag on total gross margins, gross margins on instruments we manufacture the VS2 and the Piccolo Xpress finished Q2 at near – at a near record 61% versus 57% last quarter and this gross margins finished at 68.1% up 13 basis points versus Q1. These improvements are a result of both good cost control and an increase in average selling prices. As I mentioned before, we finished Q2 with record total sales of $35.3 million, up 17% year-over-year and up 1% quarter-over-quarter.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV