Table of Contents
ABAXIS, INC.
CONSOLIDATED BALANCE SHEETS
March 31,
2010
2009
(In thousands,
except share data)
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Receivables (net of allowances of $446 in 2010 and $388 in 2009)
Inventories
Prepaid expenses
Net deferred tax assets, current
Total current assets
Long-term investments
Property and equipment, net
Intangible assets, net
Net deferred tax assets, non-current
Other assets
Total assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
Accrued payroll and related expenses
Accrued taxes
Other accrued liabilities
Deferred revenue
Warranty reserve
Total current liabilities
Non-current liabilities:
Deferred rent
Deferred revenue
Warranty reserve
Total non-current liabilities
Commitments and contingencies (Note 9)
Shareholders’ equity:
Preferred stock, no par value: 5,000,000 shares authorized; no shares issued and
outstanding in 2010 and 2009
Common stock, no par value: 35,000,000 shares authorized; 22,112,000 and
21,933,000 shares issued and outstanding in 2010 and 2009, respectively
Retained earnings
Total shareholders’ equity
Total liabilities and shareholders’ equity
See accompanying Notes to Consolidated Financial Statements.
56
$ 27,857
32,343
23,962
19,067
1,340
3,773
108,342
36,319
15,544
4,600
2,935
76
$167,816
$ 49,237
20,776
21,983
15,735
957
4,676
113,364
4,886
14,798
5,175
2,464
24
$140,711
$
$
9,404
5,615
400
1,256
1,157
1,183
19,015
3,963
3,698
34
1,116
1,024
1,714
11,549
163
1,359
160
1,682
137
1,550
583
2,270
—
—
125,050
22,069
147,119
$167,816
117,846
9,046
126,892
$140,711
Table of Contents
ABAXIS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Year Ended March 31,
2010
2009
2008
(In thousands, except per share data)
Revenues
Cost of revenues
Gross profit
Operating expenses:
Research and development
Sales and marketing
General and administrative
Total operating expenses
Income from operations
Interest and other income (expense), net
Income before income tax provision
Income tax provision
Net income
Net income per share:
Basic net income per share
Diluted net income per share
Shares used in the calculation of net income per share:
Weighted average common shares outstanding — basic
Weighted average common shares outstanding — diluted
$124,557
52,435
72,122
$105,562
46,937
58,625
$100,551
45,507
55,044
10,688
30,138
10,521
51,347
20,775
630
21,405
8,382
$ 13,023
8,361
24,712
7,757
40,830
17,795
1,271
19,066
7,053
$ 12,013
6,966
23,689
6,681
37,336
17,708
2,096
19,804
7,301
$ 12,503
$
$
$
$
$
$
0.59
0.58
22,021
22,606
See accompanying Notes to Consolidated Financial Statements.
57
0.55
0.54
21,826
22,324
0.58
0.56
21,499
22,261
Table of Contents
ABAXIS, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND
COMPREHENSIVE INCOME
Common Stock
Shares
Amount
Balances at March 31, 2007
Common stock issued under stock option exercises
Common stock issued in settlement of restricted
stock units, net of shares withheld for employee
taxes
Share-based compensation
Excess tax benefits from share-based awards
Components of comprehensive income:
Net income
Change in unrealized gain (loss) on investments,
net of tax
Comprehensive income
Balances at March 31, 2008
Common stock issued under stock option exercises
Common stock issued in settlement of restricted
stock units, net of shares withheld for employee
taxes
Share-based compensation
Excess tax benefits from share-based awards
Components of comprehensive income:
Net income
Change in unrealized gain (loss) on investments,
net of tax
Comprehensive income
Balances at March 31, 2009
Common stock issued under stock option exercises
Common stock issued in settlement of restricted
stock units, net of shares withheld for employee
taxes
Share-based compensation
Excess tax benefits from share-based awards and
other tax adjustments
Components of comprehensive income:
Net income
Change in unrealized gain (loss) on investments,
net of tax
Comprehensive income
Balances at March 31, 2010
Retained
Accumulated
Earnings
Other
Total
(Accumulated Comprehensive Shareholders’ Comprehensive
Deficit)
Income (Loss)
Equity
Income
(In thousands, except share data)
21,207,000 $103,282 $
483,000
3,128
16,000
—
—
(110)
1,122
1,609
—
—
—
—
21,706,000
194,000
—
—
109,031
636
33,000
—
—
(281)
1,749
6,711
(15,470) $
—
— $
—
87,812
3,128
—
—
—
—
—
—
(110)
1,122
1,609
12,503
—
12,503 $
12,503
(1,415)
— $
104,649
636
(1,415)
11,088
—
—
(2,967)
—
(1,415)
—
(1,415)
—
—
—
—
—
—
—
(281)
1,749
6,711
—
—
12,013
—
12,013 $
12,013
—
—
21,933,000
128,000
—
—
117,846
915
—
—
9,046
—
1,415
—
—
—
1,415
— $
126,892
915
1,415
13,428
(446)
5,398
—
—
—
—
(446)
5,398
—
1,337
—
—
1,337
—
—
13,023
—
13,023 $
13,023
—
—
22,069 $
—
—
—
— $
— $ 147,119
—
13,023
51,000
—
—
—
—
—
22,112,000 $125,050 $
See accompanying Notes to Consolidated Financial Statements.
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Table of Contents
ABAXIS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended March 31,
2010
2009
2008
(In thousands)
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Investment premium amortization
Loss on disposals of property and equipment
Loss on foreign exchange translation
Share-based compensation expense
Excess tax benefits from share-based awards
Provision for deferred income taxes
Changes in assets and liabilities:
Receivables, net
Inventories
Prepaid expenses
Other assets
Accounts payable
Accrued payroll and related expenses
Accrued taxes
Other accrued liabilities
Deferred rent
Deferred revenue
Warranty reserve
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of available-for-sale investments
Purchases of held-to-maturity investments
Proceeds from redemptions of available-for-sale investments
Proceeds from maturities and redemptions of held-to-maturity investments
Purchases of property and equipment
Proceeds from disposals of property and equipment
Purchase of intangible assets
Net cash (used in) provided by investing activities
Cash flows from financing activities:
Proceeds from issuance of common stock under stock plans, net
Excess tax benefits from share-based awards
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$ 13,023
$ 12,013
$ 12,503
4,935
211
104
60
5,337
(2,096)
1,245
4,492
—
16
137
1,743
(6,711)
4,813
3,497
—
2
—
1,108
(1,609)
6,400
(2,035)
(5,068)
(383)
(52)
5,436
1,917
884
140
26
(58)
(954)
22,672
(1,221)
1,051
(295)
(21)
(2,440)
(576)
30
479
(149)
621
349
14,331
(3,944)
(5,572)
894
33
(84)
447
—
503
(105)
(208)
1,101
14,966
(3,030)
(70,562)
3,000
27,381
(3,413)
—
—
(46,624)
—
(32,950)
36,975
14,279
(2,651)
20
(5,000)
10,673
(20,575)
(21,167)
—
32,804
(3,619)
—
—
(12,557)
469
2,096
2,565
7
(21,380)
49,237
$ 27,857 $
355
6,711
7,066
(52)
32,018
17,219
49,237 $
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds
$ 6,349
$ 1,491
$
Supplemental disclosure of non-cash flow information:
Change in unrealized gain (loss) on investments, net of tax
$
3,018
1,609
4,627
—
7,036
10,183
17,219
319
—
$ 1,415
$ (1,415)
Transfers of equipment between inventory and property and equipment, net
$ 1,797
$ 1,877
$ 1,742
Net change in capitalized share-based compensation
$
61
$
6
$
14
Common stock withheld for employee taxes in connection with share-based compensation
$
446
$
281
$
110
See accompanying Notes to Consolidated Financial Statements.
59