Abaxis Reports Preliminary Financial Performance for the Third Quarter of Fiscal 2018
UNION CITY, Calif., Jan. 9, 2018 /PRNewswire/ -- Abaxis, Inc. (NasdaqGS: ABAX), a global diagnostics company manufacturing point-of-care blood analysis instruments and consumables for the medical and veterinary markets worldwide, today reported preliminary financial results for the third fiscal quarter ended December 31, 2017.
Abaxis expects revenues in the third fiscal quarter of fiscal 2018 in a range of $59.0 million to $60.0 million, an increase of 12% to 14%, over last year's comparable quarter. In addition, Abaxis expects operating income before income tax provision in the third fiscal quarter of fiscal 2018 of $9.0 million to $10.0 million compared to $10.8 million in last year's third quarter. Abaxis expects its gross margin for the third fiscal quarter of fiscal 2018 to be between 53.5% and 54.0%.
Following the recently enacted Tax Cuts and Jobs Act ("TCJA") on December 22, 2017, Abaxis expects its effective income tax rate to decline by 200 to 300 basis points in fiscal 2018 compared to fiscal 2017, excluding a one-time non-cash charge described below. In the third quarter of fiscal 2018, Abaxis expects its effective income tax rate to be approximately 27%, excluding a one-time non-cash charge described below. Abaxis estimates its effective income tax rate in fiscal 2019 will be lower by 1,000 to 1,200 basis points compared to fiscal 2017.
During the third quarter of fiscal 2018, Abaxis expects to record a one-time non-cash charge of approximately $2.5 million to $3.5 million to its income statement as a result of TCJA. The charge is due to a reduction in deferred tax assets as a result of the reduction of the federal tax rate from 35% to 21% effective January 1, 2018. The actual impact of the TCJA on the Company's effective income tax rates may differ from the estimates above, due to changes in interpretations and assumptions made by the Company. The Company anticipates subsequent regulations associated with the TCJA will be forthcoming and will continue to analyze the tax legislation to determine the full effects of the new law on Abaxis' financial statements.
These estimated results for the third quarter of fiscal 2018 are preliminary and subject to change upon completion of Abaxis' quarter-end financial review process. Abaxis plans to announce its detailed earnings results on January 25, 2018.
Abaxis, Inc. is a worldwide developer, manufacturer and marketer of portable blood analysis systems that are used in a broad range of medical specialties in human or veterinary patient care to provide clinicians with rapid blood constituent measurements. Our mission is to improve the efficiency of care delivery to and the quality of life of patients in the medical and veterinary markets. We provide leading edge technology and tools that support best medical practices, enabling physicians and veterinarians to respond to the health needs of their clients at the point of care while operating economical and profitable practices. For more information, visit http://www.abaxis.com.
Forward Looking Statements
This Current Report includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"), including but not limited to statements related to Abaxis' expected financial results for the third quarter of fiscal 2018 and expected tax rates for fiscal 2018 and fiscal 2019. Abaxis claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," "anticipates," or words of similar import, and do not reflect historical facts. Forward-looking statements contained in this Current Report may be affected by risks and uncertainties that may cause actual results to differ materially from those projected or implied in such forward-looking statements, including, but not limited to, risks and uncertainties related to Abaxis' manufacturing operations, including the vulnerability of its manufacturing operations to potential interruptions and delays and its ability to manufacture products free of defects, Abaxis' ability to compete effectively, market acceptance of Abaxis'products, fluctuations in quarterly operating results and difficulty in predicting future results, the performance of Abaxis' independent distributors and Abaxis' ability to manage their inventory levels effectively, expansion of Abaxis' sales and marketing and distribution efforts, Abaxis' dependence on Abbott Point of Care, Inc. for its U.S. medical sales, dependence on sole or limited source suppliers, the effect of exchange rate fluctuations on international operations, dependence on key personnel, risks related to the protection of Abaxis' intellectual property or claims of infringement of intellectual property asserted by third parties. Readers should also refer to the section entitled "Risk Factors" in Abaxis' most recent Annual Report on Form 10-K, and subsequently filed quarterly reports on Form 10-Q filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements were made. Abaxis does not undertake and specifically disclaims any obligation to update any forward-looking statements.
SOURCE Abaxis, Inc.
Abaxis, Inc., Clint Severson, Chief Executive Officer, 510-675-6500; Lytham Partners, LLC, Joe Dorame, Robert Blum and Joe Diaz, 602-889-9700