Abaxis, Inc. (NASDAQ:ABAX) Q3 2017 Earnings Conference Call Transcript

Oct 24, 2017 • 04:30 pm ET

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Abaxis, Inc. (NASDAQ:ABAX) Q3 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Abaxis Second Quarter Fiscal Year 2018 Financial Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. Please note, today's event is being recorded.

I would now like to turn the conference over to Joe Dorame from Lytham Partners. Please go ahead, sir.

Executive
Joe Dorame

Thank you, Aracco. Good afternoon, and thank you for joining us today to review the financial results of Abaxis for the second quarter of fiscal year 2018, which ended on September 30, 2017. As Aracco indicated, my name is Joe Dorame, I'm with Lytham Partners, and we are the Investor Relations consulting firm for Abaxis.

With us today representing the company are Clint Severson, Chairman and CEO; Don Wood, President and COO; Ross Taylor, CFO; and Dr. Craig Tockman, VP of Animal Health Sales and Marketing, North America.

At the conclusion of today's prepared remarks, we'll open the call for a question-and-answer session. If anyone participating on today's call does not have a full text copy of the press release, you can retrieve it from the company's website at abaxis.com or numerous other financial websites.

(Forward-Looking Cautionary Statements)

Now, I'd like to turn the call over to Clint Severson, Chairman and CEO of Abaxis. Clint?

Executive
Clint Severson

Great. Thank you, Joe, and welcome, everybody, to our quarterly call. I'll make a few comments, and then I'll turn the call over to Ross and Don for further comments and then we will take questions.

Now while the headline numbers for the quarter are all right, we expect this trend to change in Q3 and Q4. We had some of pretty good upsides in Q2, where we had good performance in the Pacific Rim, where sales were up 9% versus last year, Piccolo instrument sales were up 10% year-over-year, our rapid tests were up 12% and hematology instrument sales were up 21% year-over-year. So now we need to get the rest of the company -- the rest of the product lines performing in the same direction.

Now in the R&D lab, we continue to improve productivity with the introduction of our urine chemistry system in Q2 and in schedule of introducing our urine sediment analyzer in Q4 as well as continued progress with our high sensitivity immunoassay platform. The FUSE connectivity system is now working with ImproMed and AVImark Axis-Q with additional hookup schedule for this quarter and Don will cover more in a few minutes.

Our domestic sales team will be expanding as we now better understand what support distributors require to be productive. We expect more additions in Q3 and Q4 and more from Don in a few minutes. If you've read the press release, you may have noticed that we've increased our stock buyback by $21 million to a total of 75 million and increased our dividend by 14% meeting my goal of a double-digit dividend increase each year.

Like I mentioned on our call last quarter, we continue to