Abaxis, Inc. F3Q09 (Qtr End 12/31/08) Earnings Call Transcript

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2009-01-29 18:15:24.0

Tags: Catalyst, Call Transcript, Quarter, Earnings, Abaxis Inc., Martin Mulroy Heartworm, Pricing, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of James Sidoti with Sidoti and Company.

James Sidoti – Sidoti & Co.

Clint can you hear me?

Clinton Severson

Yep.

James Sidoti – Sidoti & Co.

Can you just clarify this German order, this $900,000 order, was this something that you thought was going to come in the third quarter, but because of shipping delay it’s got pushed back?

Clinton Severson

Yeah, so what you had here is a situation where in our Q3 in past periods, we would get the container orders sometime in December and ship at the same month. And when the forecast was done in October it was then there like it is then there every year. And but the order didn’t come in until early January instead of late December. So, it’s going to ship this quarter at the last quarter. So, clearly the distributor felt that he had enough for couple of extra days and he didn’t want the inventory on his books, he didn't want to pay the extra money and so it ships this quarter rather than last quarter.

James Sidoti – Sidoti & Co.

So sure you would expect the fourth quarter then to be a little bit stronger in Germany than it traditional is?

Clinton Severson

We would expect that yes.

James Sidoti – Sidoti & Co.

Okay, all right, and then on the Vet side, I think Martin said the Vet chemistry instruments were up 13% is that right?

Clinton Severson

Yes.

James Sidoti – Sidoti & Co.

Okay, so this is part of the third quarter where there has been a more comprehensive well out of catalyst. It sounds like you're really not seeing much in your effect from your customers. Are you hearing anything on catalyst?

Clinton Severson

I believe its still a very, very controlled rollout. No, we’re seeing the review in clinics.

James Sidoti – Sidoti & Co.

With 13% growth in this economy, I can’t imagine that it’s having a lot of impact on your business?

Clinton Severson

Yep, and we’ve got 50 reps out there. Cost on everyday in the clinics and seven field sales managers and we can’t find them.

James Sidoti – Sidoti & Co.

And you said Marty the Heartworm Test had already started to ship?

Martin Mulroy

Heartworm is shipping yes.

James Sidoti – Sidoti & Co.

Can you tell us what the pricing is?

 

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