ABAXIS develops, manufactures and markets portable blood analysis systems for use in any patient-care setting to provide clinicians with rapid blood constituent measurements. The system consists of a compact, 6.9 kilogram, portable analyzer and a series of 8-cm diameter single-use plastic disks, called reagent discs that contain all the reagents necessary to perform a fixed menu of tests. The system can be operated with minimal training and perform multiple tests on whole blood using either venous or fingerstick samples. The system provides test results in less than 14 minutes with the precision and accuracy equivalent to a clinical laboratory. In addition to the blood chemistry analysis system, the Company markets a hematology analysis system. The hematology system, the VetScan HMT, is purchased from MELET SCHLOESING Laboratoires International ("MELET") through a cross OEM agreement. MELET markets the VetScan as the MScan in certain European markets.

http://www.abaxis.com

Record quarterly highlights include:

    --  Revenues of $30.3 million, up 9% over last year's comparable quarter.
    --  North America revenues of $24.8 million, up 11% over last year's
        comparable quarter.
    --  Total medical and veterinary instrument sales of 926 units, up 26% over
        last year's comparable quarter.
    --  Total medical and veterinary reagent disc sales of 1.5 million units, up
        2% over last year's comparable quarter.
    --  Gross profit of $17.9 million, up 16% over last year's comparable
        quarter.

    --  Gross margin of 59%, up 358 basis points over last year's comparable
        quarter.

Quarterly Results: For the fiscal quarter ended September 30, 2009, Abaxis reported revenues of $30.3 million, as compared with revenues of $27.7 million for the comparable period last year, an increase of 9 percent. Revenues from instrument sales, which include chemistry analyzers, hematology instruments, coagulation analyzers and i-STAT analyzers, decreased by an aggregate of $339,000, or 5 percent, over the same period last year, primarily due to lower average selling price and a change in product mix. Total medical and veterinary instrument sales were 926 units, up 26 percent over the same period last year. Revenues from consumables, which include reagent discs, hematology reagent kits, coagulation cartridges, i-STAT cartridges and heartworm rapid tests, increased by an aggregate of $2.3 million, or 12 percent, over the same period last year. The company reported net income of $3.2 million, compared to $3.3 million for the same period last year. The company's effective tax rate in the quarter ended September 30, 2009 was 39 percent, compared to 36 percent for the same period last year. The company reported diluted net income per share of $0.14 (calculated based on 22,574,000 shares) for the second quarter of fiscal 2010, compared to $0.15 per share (calculated based on 22,304,000 shares) for the same period last year.
 

Six Month Results: For the six-month period ended September 30, 2009, Abaxis reported revenues of $59.9 million, as compared with revenues of $52.3 million for the comparable period last year, an increase of 15 percent. Revenues from instrument sales decreased by an aggregate of $1.9 million, or 13 percent, over the same period last year, primarily due to lower average selling price and a change in product mix. Total medical and veterinary instrument sales were 1,759 units, up 14 percent over the same period last year. Revenues from consumables increased by an aggregate of $8.3 million, or 25 percent, over the same period last year. The company reported net income of $7.0 million, compared to $6.1 million for the same period last year. The company's effective tax rate in the six-month period ended September 30, 2009, was 40 percent, compared to 37 percent for the same period last year. The company reported diluted net income per share of $0.31 (calculated based on 22,492,000 shares) for the six-months ended September 30, 2009, compared to $0.27 per share (calculated based on 22,363,000 shares) for the same period last year.
 

Other Reported Information: Consumables revenues for the second quarter of fiscal 2010 were $21.0 million, up 12 percent over the $18.7 million reported for the same period last year. Total sales in the medical market for the second quarter of fiscal 2010 were $6.3 million, an increase of 5 percent compared to the same period last year. Medical sales worldwide, excluding sales to the U.S. government, during the second quarter of fiscal 2010 were $5.6 million, an increase of 9 percent compared to the same period last year. Total sales in the veterinary market for the second quarter of fiscal 2010 were $21.7 million, an increase of 9 percent compared to the same period last year. Veterinary reagent disc sales for the second quarter of fiscal 2010 were $13.8 million, an increase of 1 percent compared to the same period last year.