Service revenue totalled $6.0m (€4.7m), down from $6.1m a year ago, and this contributed to total sales falling by one per cent to $8.1m. Despite revenue remaining flat BASi recorded an operating profit of $558,000, compared to a loss of $571,000 in the corresponding period of 2009.
Improvement in operating income was underpinned by lower costs and expenses. Total cost of revenue declined year-on-year by 10 per cent and operating expenses fell from $2.7m to $2.1m.
Higher operating costs last year can be partly attributed to a $472,000 impairment loss.
Anthony Chilton, president and CEO of BASi, said reducing expenses has allowed the business to remain competitive in the current environment. Revenues are yet to return to levels seen before the downturn but activity in the market is promising, said Chilton.
BASi made a net income of $288,000 in the third quarter. This is the first time BASi has recorded a net quarterly profit since 2007. “We are hopeful that returning to profitability will be beneficial in our efforts to refinance $2.5m of debt maturing in the next twelve months”, said Chilton.
First nine months
Despite growth in the third quarter BASi posted a $2.0m operating loss over the first nine months of fiscal 2010. In the corresponding period of 2009 BASi recorded an operating loss of $4.3m.
This improvement occurs despite declining revenue, which fell year-on-year from $23.3m to $21.4m. Total cost of revenue fell from $18.2m to $16.0m. Operating expenses declined year-on-year from $9.4m to $7.3m.
Earlier this year BASi expanded its capabilities to include testing for particulate matter in injections. Performing this in-house is quicker than outsourcing the work to sub-contractors.