Abaxis Sees Q3 Revenues Below View

(RTTNews) - Abaxis Inc. (ABAX)said that it expects revenues in the third fiscal quarter of $52.0 million to $53.0 million, flat with last year's comparable quarter. Analysts polled by Thomson Reuters expect the company to report revenues of $58 million. Analysts' estimates typically exclude special items.

Performance in the third fiscal quarter was hindered by a difficult comparison for Abaxis' medical business, as a result of the sale of 200 Piccolo Xpress instruments to a medical device distributor in the People's Republic of China in the same quarter last year.

In addition, changes in foreign currency exchange rates reduced revenues by approximately $0.7 million. The reduction of some medical and veterinary orders from distributors, including Abbott Point of Care, Inc., further impacted revenues and continuing competitive challenges in Abaxis' veterinary business also limited its growth.

In addition, Abaxis expects operating income in the third fiscal quarter of $10.0 million to $11.0 million compared to $11.3 million in last year's third quarter. Abaxis expects its gross margin for the third fiscal quarter to be between 55% and 56%.

Abaxis plans to announce its detailed earnings results on January 26, 2017.