Bioanalytical Systems, Inc. (BASi) has announced financial results for the third quarter and first nine months of fiscal 2016.
Third Quarter Results
For the three months ended June 30, 2016, revenue was $5,053,000 a 17.8% decrease from $6,150,000 in the third quarter of fiscal 2015.
Service revenue for the third quarter of fiscal 2016 decreased 24.6% to $3,773,000 compared to $5,001,000 for the same period in fiscal 2015. The company recognized a one-time benefit to Preclinical services revenues from an early termination in the third quarter of fiscal 2015 which did not repeat in fiscal 2016, resulting in a 17% revenue decline versus the same quarter prior year. Bioanalytical revenue decreased 35%, due to fewer samples received and analyzed in the third quarter of fiscal 2016 versus the comparable period in fiscal 2015.
Sales in our Product segment increased 11.4% in the third quarter of fiscal 2016 to $1,280,000 from $1,149,000 in the same period in fiscal 2015. The majority of the increase stems from increased instrument sales from our BASi Culex®automated in-vivo sampling line, plus an increase in sales of our analytical instruments and consumables over the same period in fiscal 2015.
Gross profit decreased to $1,173,000, or 23.2% of revenue, in the third quarter of fiscal 2016, compared to $2,490,000, or 40.5% of revenue, during the comparable fiscal 2015 period. The principal cause for the decrease was the decline in services revenue which led to lower absorption of the fixed costs in our business.
Operating expenses for the third quarter of fiscal 2016 increased to $1,538,000 compared to $956,000 during the third quarter of fiscal 2015. The principal reason for the increase was a favorable $620,000 mediation settlement with one of the Company’s former service providers, which reduced expenses in the third quarter of fiscal 2015. This settlement was recorded under operating expenses in the condensed consolidated statements of operations and comprehensive income (loss).
Net loss for the third quarter of fiscal 2016 amounted to $433,000, or $0.05 per diluted share, compared to net income of $1,478,000, or $0.16 per diluted share, for the third quarter of fiscal 2015.