Bioanalytical Systems, Inc. (NASDAQ:BASI) reported that revenue in 1Q2017 came at $6.174 million compared to $4.895 million in the 1Q2016. Service revenue for 1Q2017 increased 30% to $5.264 million compared to $4.055 million for the same quarter in fiscal 2016.
The buzz
Bioanalytical reported that Preclinical services revenue jumped due to a considerable increase in the number of trials as against the prior year period. Other lab services revenue was positively impacted by increased pharmaceutical and discovery analysis revenues in the initial quarter of FY2017 versus the same period in FY2016.
Sales in products segment grew 8% in 1Q2017 to $910,000 from $840,000 over the same period in the same quarter, a year ago. The majority of the growth comes from increased sales of Culex automated in vivo sampling plans and related consumables compared to the same period in the preceding fiscal year.
Gross profit came at $1.859 million, or 30% of revenue, in 1Q2017, versus $984,000, or 20% of revenue, in the same quarter in FY2016 period. The principal leads for the improvement were the jump in revenue, which resulted in an increased absorption of the fixed costs in business, and a favorable sales mix.
Bioanalytical reported that operating expenses for 1Q2017 increased 17% to $1.765 million compared to $1.513 million during 1Q2016. The major reasons for the jump can be stated as: the accrual for the compensation for former CEO, amounting to almost $200,000, and higher consulting services linked to forbearance setups with Huntington Bank. These things were offset slightly by reduced spending for both employees search and outside services costs.
Operating income for 1Q2017 amounted to $94,000 against an operating loss of $529,000 in the same period, a year ago. The improvement was mainly due the improved operating margins and higher revenue slightly offset by increased operating costs.
