BASi sees Q3 profit rise due to early preclinical project terminations
The growth comes as the company saw accelerated recognition of preclinical service revenue from early project terminations and a one-time mediation settlement with a former, unnamed service provider. Preclinical service revenues also improved due to an increased number of mice and rat studies from the prior year period.
Adjusted EBITDA through the first nine months of FY2015 amounted to 16% of revenue, which compares with 11.5% during the same period last year.
“Beside our relatively small scale versus our industry competitors, this is a highly competitive return. Revenue is increasing versus the prior quarter and the same quarter last year,” Jacqueline Lemke, BASi’s President and CEO, told investors last week.
However, product revenue for the company declined in Q3 by about 10% compared to the same period last year, primarily due to lower analytical instrument sales.
“We are intensifying our focus on our commercial efforts, adding more experienced scientist and business development people, sharpening our process and sales targeting and increasing the involvement of our scientists and business unit leaders in our client development,” Lemke added.