BASi (Bioanalytical Systems, Inc.) (Nasdaq: BASI) today reported financial results for the first three months of fiscal 2011, ending December 31, 2010.
For the quarter ended December 31, 2010, the Company reported net earnings of $310,000 ($0.06 per share, basic and diluted) on revenues of $8.1 million. This compares to a loss of $1.5 million ($0.30 per share, basic and diluted) on revenues of $6.4 million in the corresponding quarter of the prior year. The improvement in earnings for the current fiscal quarter is mainly due to higher revenues in both our service and product segments as well as reductions in operating expenses. Revenues increased 27.7% in our services segment and 24.3% in our products segment from the prior year period. Revenues for the first fiscal quarter of 2011 were higher than any of the four quarters of fiscal 2010. Increased proposal opportunities, new orders accepted and increased research and development spending from our products clients have contributed to the revenue improvement. Operating expenses were reduced $265,000 from the first quarter of the prior year mainly due to cost containment initiatives implemented throughout the Company.
The Company negotiated an amendment to two of its loan agreements with Regions Bank (“Regions”), on November 29, 2010. Regions agreed to accept a $500,000 principal payment on a note with $1.1 million of principal maturing on December 18, 2010 and a $500,000 principal payment on another note with $1.3 million of principal maturing on February 11, 2011. The unpaid principal on the notes will be incorporated into a replacement note maturing in November, 2012. The first payment of $500,000 was made on December 17, 2010. The Company expects to make the second $500,000 payment on schedule.
Anthony S. Chilton, Ph.D., President and Chief Executive Officer, stated, “It is very encouraging for our organization to start our current fiscal year with a profitable quarter on stronger revenues. We believe that we have positioned BASi to take advantage of our recovering markets, with an expanded sales force, strong professional teams throughout our organization, and a cost structure that is very competitive. We are committed to building on this solid start for our current year.”