Biosensors declares dividend payout of USD$0.02

Biosensors announced a set of good results. Below is a short write-up on this SGX-listed company.
Quick Glance 
1) Net Profit: US$115milliom
2) Cash and cash equivalent: US$614million
3) Net current asset: US$688million
4) Long term borrowing: US$277million
5) Net cash from operation: US$123million
6) Net asset value per share: US$0.72


Performance Summary for FY13  
For the full year FY13, total revenue was US$336.2 million, a 15% increase from the fiscal year ended 31 March 2012 (FY12). Total product revenue was US$278.5 million, a 32% year-on-year increase while IVP revenue rose 35% year-on-year to US$264.9 million, primarily driven by growth in the Company’s DES sales and the consolidation of JWMS’ financial results starting from the third quarter of FY12 (Q3 FY12). CCP revenue was US$13.6 million, a 7% decrease from US$14.6 million in FY12. Licensing and royalties revenue was US$57.7 million, down US$23.1 million or 29% from US$80.8 million in FY12.

Gross margin on total product sales was 81% for FY13, a significant improvement from 73% in FY12 attributable to more favorable geographical and product mix as well as greater economies of scale.
Total operating expenses accounted for 57% of product revenue in FY13, compared to 61% for FY12. In detail, S&M expense was US$90.0 million, G&A expense was US$40.6 million, while R&D expense was US$27.5 million.

 For FY13, despite a US$23.1 million or 29% year-on-year decrease in royalty revenue, Biosensor’s operating profit still achieved US$123.6 million, a 16% year-on-year increase from the same period last year.

Excluding exceptional items, which comprise a provision for restructuring expenses, fair value adjustment for warrants, realization of translation difference on liquidation of a subsidiary and impairment of goodwill, net profit for FY13 would have been US$111.6 million or basic EPS of 6.48 US cents and diluted EPS of 6.39 US cents. This compares to a net profit of US$101.0 million or basic EPS of 6.69 US cents and diluted EPS of 6.55 US cents, for FY12, after excluding the fair value adjustment for warrants, the one-off non-operating gain of US$279.6 million on re-measurement of the Group’s interest in JWMS in the third quarter of FY12 and the impairment of goodwill.

Including exceptional items, net profit for FY13 was US$115.4 million or basic EPS of 6.70 US cents and diluted EPS of 6.60 US cents, compared to a net profit of US$364.3 million or basic EPS of 24.12 US cents and diluted EPS of 23.63 US cents for FY12.

Biosensors recently raised approximately US$240 million through the issuance of 4-year fixed rate notes with an interest rate of 4.875%, payable semi-annually in arrear. The Company’s interest expense will increase in future periods as a result of issuing these notes.
Financial Guidance for FY14  
For the fiscal year ending 31 March 2014 (FY14), management anticipates total revenue to grow by around 15% over FY13. This guidance is driven primarily by continued product revenue growth, expected commercialization of four new products including BioMatrix NeoFlex, and the newly acquired business of Spectrum Dynamics. The Company expects its royalty income to be similar to FY13. The Company’s practice is to provide guidance on a full year basis only. This forecast reflects Biosensors’ current and preliminary views, which are subject to change. It also excludes the potential impact from foreign exchange fluctuations, or any exceptional events and unforeseen circumstances that may occur.

“Looking ahead, our objective remains to further develop our DES business while seeking new growth opportunities. We are also excited about our CE Mark approval for BioMatrix NeoFlex. This represents another important step forward for the BioMatrix brand, improving our flagship product with enhanced deliverability,” said Dr. Wang. “In the area of M&A, our recently-completed acquisition of Spectrum Dynamics’ assets demonstrates our conviction to prudently expand our product offerings. With the completion, we will now focus on integrating Spectrum Dynamics’ assets with Biosensors’ existing businesses and actively expanding its business potential. We are also continuing to make good progress in our discussions with several other potential M&A targets. All in all, we are excited about the developments taking place in Biosensors which we believe will substantially increase shareholder value.”

The Board of Directors has recommended a dividend of US$0.02 per share for the financial year ended 31 March 2013, based on the Company’s net income for the full year FY13.  Biosensors has approximately 1.72 billion issued ordinary shares (excluding treasury shares) as at 31 March 2013. This recommendation is subject to shareholders’ approval during the Company’s next Annual General Meeting, and the actual dividend payment can only be determined on books closure date.

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