Thursday, May 26, 2011

Biosensors International Announces Continued Sales And Earnings Growth for the Fourth Quarter And Fiscal Year Ended 31 March 2011

Singapore, 26 May 2011 ‐ Biosensors International Group, Ltd. (“Biosensors” or the “Company”, Bloomberg: BIG SP) today announced continued strong sales and earnings growth for its fourth fiscal quarter (“Q4 FY11”) and fiscal year ended 31 March 2011 (“FY11”).

Total product sales in the fourth quarter were US$39.7 million, a 33% increase over the same quarter of fiscal year 2010 (“Q4 FY10”), driven largely by continued growth in sales of the BioMatrix™ family of drug‐eluting stents (“DES”). Total Interventional Cardiology revenues increased to US$36.5 million in Q4 FY11, a 35% increase over the US$27 million reported in Q4 FY10, with higher DES sales offset by lower component sales. Sales of critical care products (“CCP”) for Q4 FY11 increased to US$3.3 million as compared to US$2.9 million for Q4 FY10. Including licensing revenue and royalties, total revenue for Q4 FY11 was US$44.5 million versus US$32.8 million for Q4 FY10, an increase of 36%.

Product revenue for FY11 was US$139.4 million, compared to US$107.1 million for FY10, a 30% increase. Interventional Cardiology revenues in FY11 were US$126.4 million, a 34% increase over the US$94.6 million reported in FY10. Sales of CCP increased slightly to US$13.0 million in FY11 as compared to US$12.5 million in FY10.

Gross margins on total product sales improved to 75% in FY11 from 70% in FY10, driven by a shift in product mix toward the Company’s higher margin DES products, combined with increased economies of scale in manufacturing.

“Our overall product sales achieved another quarter of positive growth, thanks to strong growth in our DES business”, commented Co-CEO Jeffrey B. Jump. “Our results reflect the continuing market penetration and acceptance of our technology, the safety and efficacy of which are backed by a robust and growing body of clinical evidence”.

Sales and marketing expenses were US$12.2 million in Q4 FY11 compared to US$8.7 million in Q4 FY10, and US$44.0 million for FY11 compared to US$31.4 million for FY10. The increase was mainly due to higher expenses for headcount, warehousing, trade shows and brand building as the Group continued to expand its sales force and global marketing activities.

General and administrative expenses were consistent at US$5.1 million in Q4 FY11, compared to US$5.0 million in Q4 FY10, and US$17.7 million for FY11, compared to US$19.1 million for FY10. The decrease was mainly due to lower share-based expenses as well as decreased payroll-related expenses resulting from the Company’s recent US restructuring.

Research and development (“R&D”) expenses, which include costs for new product development and testing, pre-approval clinical trials, and regulatory approval costs, were US$4.7 million in Q4 FY11 compared to US$3.0 million in Q4 FY10. For FY11, R&D expenses were US$16.1 million compared to US$13.1 million for FY10. This increase was mainly due to higher clinical trials expenses and additional investment in research and development.

Included in the Q4 FY11 results is the equity method of accounting for the Company’s 50% ownership interest in JW Medical Systems Ltd (“JWMS”), which resulted in net income of US$5.0 million.

In Q4 FY11, the Group reported net profit of US$18.2 million, or basic earnings per share (“basic EPS”) of 1.65 US cents and diluted earnings per share (“diluted EPS”) of 1.60 US cents, compared to a net profit in Q4FY10 of US$9.1 million, or basic EPS of 0.85 US cents and diluted EPS of 0.82 US cents.

For FY11, the Group reported net profit of US$43.3 million (basic EPS of 3.99 US cents and diluted EPS of 3.88 US cents) compared to net profit in FY10 of US$32.1 million (basic EPS of 3.02 US cents and diluted EPS of 2.96 US cents).

Excluding the fair value adjustments for the warrants and the restructuring charges related to the closure of the US operations, net profit in Q4 FY11 would have been US$16.7 million (basic EPS of 1.51 US cents and diluted EPS of 1.46 US cents). For FY11, excluding the fair value adjustments for the warrants and US restructuring charges, net profit would have been US$52.6 million (basic EPS of 4.85 US cents and diluted EPS of 4.72 US cents).

“We closed the fiscal year on a strong note, having successfully achieved our revenue and profitability targets through the effective execution of our growth strategies. The credit for the positive results goes to our entire team”, concluded Co-CEO Jack Wang. “Our total product revenues met the mid-range of our previous guidance. We were also able to lower our operating expenses through our various cost-reduction measures and restructuring efforts, and we will continue to manage our operating costs carefully as we continue our strong growth. In FY12 we will continue to leverage our global sales network driving increased coverage within existing markets and increased penetration within existing accounts. In addition, we will aggressively pursue expansion opportunities in high-growth markets such as China, India and Latin America”.

Financial Guidance
For the fiscal year ending 31 March 2012 (“FY12”), management anticipates that total revenue will grow by 20% to 30% compared to FY11. The increase in total revenue will continue to be driven by our drug-eluting stent business and increased licensing royalties. The Company expects FY12 profitability to increase over FY11 on an overall basis, with the effect of higher revenues being offset by increased expenses required to support revenue growth and development of future products.
The revenue and profitability estimates provided by Company’s management do not include the potential effects of foreign exchange gains and losses or any additional exceptional events or unforeseen circumstances which may occur.

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  1. Any advice on GMG?

  2. I think at the current price, there is not plenty of upside. 30 cents maybe. From its price action, you can tell that there are strong supporters behind this stock that won't easily sell the shares. when you look at golden agri, it can easily swing both sides without much change in fundamentals because the big boys behind the scene want to play it both ways.

    But not GMG because i think the stock distribution is to a few share holders. IIRC 50% is Sinochem, some to the founding family, then the balance in the hands of funds or public....