This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Abaxis CEO Discusses F2Q2011 Results - Earnings Call Transcript

Clint Severson

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

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,098.04 -5.80 -0.28%
NASDAQ 5,115.3820 -12.8990 -0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs