West Lafayette-based Bioanalytical Systems Inc. (Nasdaq: BASI) has announced a fiscal second quarter net income of more than $150,000, compared to a loss of $219,000 during the same quarter last year. Chief Executive Officer Jacqueline Lemke says the pharmaceutical development company has “intensified” its business recruitment efforts. May 14, 2015

News Release

WEST LAFAYETTE, Ind. (May 14, 2015) – Bioanalytical Systems, Inc. (NASDAQ:BASI) today (“BASi” or the “Company”) announced financial results for the second quarter of fiscal 2015.

“The second quarter and first half financial results, overall, indicate flat to slightly lower revenue growth versus the prior fiscal year. I am encouraged, however, that the long term will reflect that BASi is consistently improving our focus on providing high-quality, timely data and laboratory instruments in support of new drug discoveries and is growing the business. We have intensified our efforts to actively recruit business by sharing our full line of capabilities with potential new clients at a record high rate, presentation of scientific white papers, attendance and sponsorship at industry leading conventions and by pursuing repeat business with our extensive, satisfied long-term client base while continuing to implement operational efficiency improvements which differentiate our company from other CROs based upon innovation, client-focus and regulatory excellence,” said BASi's President and Chief Executive Officer, Jacqueline Lemke.

“As we carry our message of high quality data, analysis and instruments to the market and deliver our studies and products on time and in full, we are creating value for not only our clients but our shareholders which will be reflected in long term revenue growth over time, expanded margins and higher cash flow,” Ms. Lemke concluded.

Second Quarter Results

For the three months ended March 31, 2015, revenues decreased 3.1% to $5,726,000 compared to $5,912,000 in the second quarter of fiscal 2014.

Service revenue for the second quarter of fiscal 2015 of $4,530,000 was essentially flat compared to $4,526,000 for the same period of the prior fiscal year. Second quarter fiscal 2015 revenues were impacted by lower Other Laboratory services revenue, partially offset by increases in the volume of Preclinical and Bioanalytical analysis revenues.

Product revenue for the second quarter of fiscal 2015 amounted to $1,196,000, a decrease of 13.7% compared to revenue of $1,386,000 for the second quarter of fiscal 2014. The decline was due to lower analytical product and other instrument sales in addition to slightly lower sales of the Culex® in vivo sampling systems.

Gross profit decreased to $1,802,000, or 31.5% of revenue, in the second quarter of fiscal 2015 compared to $2,012,000, or 34.0% of revenue, during the comparable period last fiscal year. The decline reflects the impact of lower revenue and a less favorable mix..

Operating expenses for the second quarter of fiscal 2015 decreased to $1,774,000 compared to $1,907,000 during the second quarter of fiscal 2014, primarily due to the elimination of a direct sales role in the UK and a Vice-President role in our Evansville facility,

Operating income for the second quarter of fiscal 2015 amounted to $28,000 compared to operating income of $105,000 for the second quarter of fiscal 2014, primarily due to lower revenue offset in part by lower operating expenses.

Net income was $150,000 for the second quarter of fiscal 2015. Diluted net loss, accounting for the adjustment for the change in fair value of warrant liability, was $(49,000) or $(0.01) per diluted share compared to a diluted net loss of $(219,000), or $(0.03) per diluted share, for the second quarter of fiscal 2014.

Adjusted EBITDA for the second quarter of fiscal 2015 amounted to $399,000 compared to Adjusted EBITDA for the first quarter of fiscal 2014 of $504,000.

First Half Results

For the six months ended March 31, 2015, revenue decreased 4.6% to $11,571,000 compared to $12,132,000 for the first six months of fiscal 2014. The decline was due to lower Bioanalytical and Other Laboratory revenues and a decline in other instrument sales offset in part by increases in Preclinical services and sales of the Culex®, in-vivo sampling systems. Gross profit decreased by 2.3 percentage points to $3,706,000, or 32.0% of revenue, compared to $4,157,000, or 34.3% of revenue, for the same period of the prior fiscal year. The decline was driven by a decrease in revenues which led to lower absorption of fixed costs and a change in sales mix in the Products segment. Operating income decreased to $170,000 compared to $567,000 a year earlier. The decline in operating income reflects the impact of lower revenue and lower fixed cost coverage offset in part by lower operating expenses.

Net income amounted to $332,000 for the first six months of fiscal 2015. Diluted net income, which includes the adjustment for the change in fair value of warrant liability, was $13,000 or $0.00 per diluted share for the first six months of fiscal 2015 compared to a diluted net loss of $(881,000), or $(0.11) per diluted share, for the first six months of fiscal 2014.

Adjusted EBITDA for the first six months of fiscal 2015 amounted to $949,000 compared to Adjusted EBITDA for the first six months of fiscal 2014 of $1,416,000.

Cash Used in Operating Activities

Cash provided by operating activities was $440,000 for the first six months of fiscal 2015. The Company had $536,000 in cash and cash equivalents at March 31, 2015. During the first six months, cash from operations, and cash on hand funded capital expenditures for plant, machinery and equipment of approximately $231,000 and reductions in long-term debt.

About Bioanalytical Systems, Inc.

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.

Source: Bioanalytical Systems Inc.

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