Abaxis reports third quarter financial results.

SUNNYVALE, Calif.--(HealthWire)--Jan. 26, 1994--ABAXIS Inc. (NASDAQ:ABAX), a medical products company, today reported operating results for its third fiscal quarter and nine-month period ended December 31, 1994.

For the third quarter, the company reported a net loss of $1,896,000, or 23 cents per share, compared with a net loss of $2,021,000, or $.32 per share, for the same period last year.

Revenues for the quarter were $317,000. There was no revenue reported for the same period last year. For the first nine months of the fiscal year, the company reported a net loss of $7,471,000, or $1.07 per share, compared with a net loss of $5,825,000, or $.93 per share, for the same period last year.

Nine-month revenues were $594,000 compared with revenues of $1,112,000 (which included a one-time sale of distribution and manufacturing rights revenues of $1,000,000) for the same period last year.

"We are pleased with our accomplishments to date. Our sales efforts have resulted in an increase in shipments of both instruments and reagent rotors, indicating that our portable blood analyzer is generating excitement and satisfying a real need in the veterinary marketplace," said Gary H. Stroy, President and Chief Executive Officer of ABAXIS.

"This is evidenced by the enthusiastic response we received at the North American Veterinary Conference in Orlando, Fla. on January 14-18, which resulted in sales of our analyzers right off the floor."

In October, ABAXIS completed a placement of registered common stock which brought net proceeds of $9.2 million to the company. The additional cash infusion will be used to support sales and expanding test menu capabilities.

During the quarter, ABAXIS signed a licensing agreement with Pharmacia Biotech, Inc. of Piscataway, New Jersey, a wholly owned subsidiary of Pharmacia Biotech AB, Uppsala, Sweden, granting Pharmacia Biotech the right to use the company's Orbos Discrete Lyophilization Technology in the manufacture and sale of a line of reagents for use in molecular biology research.

ABAXIS also has a supply agreement with Becton Dickinson Immunocytometry Systems for flow and image cytometry products using the Orbos technology.

ABAXIS also appointed Morton A. Cohen to its Board of Directors, expanding the Board to seven members. Mr. Cohen brings to ABAXIS more than 10 years of experience in venture capital and over 20 years of experience in the public securities industry, both as a securities analyst and a mergers and acquisitions consultant.

ABAXIS, founded in 1989, develops, manufactures, and markets a portable blood analysis system for both the human and veterinary medical markets. The product consists of a 15 pound blood analyzer and a series of 3" diameter single-use plastic disks, called reagent rotors, that contain the reagents necessary to perform a menu of tests.

The analyzers can perform multiple tests simultaneously on only a few drops of whole blood. Automated calibration and quality control features are integrated into the systems to ensure accurate and precise results. -0-

                              ABAXIS Inc.
                     (A Development-Stage Company)
                     Summary Financial Information
                 (in thousands, except per share data)
                             (Unaudited)

                              Three Months Ended      Nine Months Ended
                                   Dec. 31,                 Dec. 31,
                               1994      1993           1994      1993
Statements of Operations Data:

Revenues                       $317        $-0-      $594    $1,112

Operating expenses:
  Cost of sales                 792         --      1,864        --

  Research and development      700      1,756      3,603     5,953
  Selling, general and
    administrative              795        399      2,725     1,477
   Total operating expenses   2,287      2,155      8,192     7,430

Loss from operations         (1,970)    (2,155)    (7,598)   (6,318)

Interest income                 105        203        274       693
Interest expense                (31)       (69)      (147)     (200)

Net loss                    $(1,896)   $(2,021)   $(7,471)  $(5,825)
Net loss per share          $ (0.23)    $(.32)     $(1.07)    $(.93)

Shares used in calculating
  net loss per share      8,383,999 6,235,977   6,996,695 6,217,613

(in thousands)
                                             Dec. 31,       March 31,
                                               1994          1994
                                                  (Unaudited)
(Audited) Balance Sheet Data:

Cash, cash equivalents and
 short-term cash investments                $  7,935         $  5,571

Working capital                             $  7,451         $  3,971
Long-term cash investments                  $  1,515         $  4,500

Total assets                                 $13,662          $13,569
Total stockholders' equity                   $11,937          $10,003

CONTACT: Gary H. Stroy

President and Chief Executive Officer

ABAXIS Inc.

408/745-6854

or

Rob Whetstone

Pondel Parsons & Wilkinson

310/207-9300