Inotiv
NOTV
#10464
Rank
$9.08 M
Marketcap
$0.26
Share price
4.51%
Change (1 day)
-88.81%
Change (1 year)

Inotiv - 10-Q quarterly report FY


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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1998

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to _____________

Commission File Number 333-36429

BIOANALYTICAL SYSTEMS, INC.
(Exact name of the registrant as specified in its charter)

<TABLE>

<CAPTION>



<S> <C>
INDIANA. . . . . . . . . . . . . 35-1345024
(State or other jurisdiction of. (I.R.S. Employer
incorporation or organization) . Identification No.)

2701 KENT AVENUE
WEST LAFAYETTE, IN . . . . . . . 47906
(Address of principal executive. (Zip code)
offices)

(765) 463-4527
(Registrant's telephone number,
including area code
</TABLE>



Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

YES [X] NO

As of March 31, 1998, 4,451,343 Common Shares of the registrant were
outstanding.
<TABLE>

<CAPTION>



<S> <C> <C>
PAGE
NUMBER
PART I . . . . . . . . FINANCIAL INFORMATION

Item 1 - Financial
Statements Unaudited):

Consolidated Balance Sheets as of
September 30, 1997 and
March 31, 1998 4

Consolidated Statements of Income for 7
the Three Months and Six Months ended
March 31, 1997 and 1998

Consolidated Statements of Cash Flows 9
for the Six Months Ended March 31,
1997 and 1998

Notes to Consolidated Financial 12
Statements

Item 2 - Management's 12
Discussion and
Analysis of Financial
Condition and Results
of Operations

PART II. . . . . . . . OTHER INFORMATION 15

Item 1 - Legal 15
Proceedings

Item 2 - Changes in 15
Securities and Use of
Proceeds

Item 4 - Submission of 16
Matters to a Vote of
Security Holders

Item 6 - Exhibits and 16
Reports on Form 8-K

SIGNATURES 19

</TABLE>
PART I -- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

<TABLE>

<CAPTION>

BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)


<S> <C> <C>
September 30, March 31,
1997 1998
(Note) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents . . . . . . . . $ 161 $ 2,985
Accounts receivable, net. . . . . . . . . 3,014 2,969
Inventories . . . . . . . . . . . . . . . 1,911 2,105
Other current assets. . . . . . . . . . . 47 52
Deferred income taxes . . . . . . . . . . 210 210
Total Current Assets. . . . . . . . . . 5,343 8,321
Goodwill, less accumulated amortization of. 210 528
$30 and $41
Other assets. . . . . . . . . . . . . . . . 343 228
Property and equipment:
Land and improvements . . . . . . . . . . 171 171
Buildings and improvements. . . . . . . . 4,294 8,332
Machinery and equipment . . . . . . . . . 4,067 4,730
Office furniture and fixtures . . . . . . 681 823
Construction in process . . . . . . . . . 3,625 178
12,838 14,234
Less accumulated depreciation . . . . . . (2,803) (3,154)
10,035 11,080
Total Assets. . . . . . . . . . . . . . . $ 15,931 $ 20,157
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable. . . . . . . . . . . . . $ 1,341 $ 1,287
Income taxes payable. . . . . . . . . . . 250 234
Accrued expenses. . . . . . . . . . . . . 353 309
Customer advances . . . . . . . . . . . . 102 158
Current portion of long-term debt . . . . 288 90
Lines of credit 515 ---
Total current liabilities . . . . . . . 2,849 2,078
Long-term debt, less current portion. . . . 5,045 62
Deferred income taxes . . . . . . . . . . . 1,154 1,204
Convertible Preferred Shares:
1,000,000 shares authorized;
166,667 and no shares issued
and outstanding . . . . . . . . . . . . 1,232 -
Shareholders equity:
Common Shares: 19,000,000 shares
authorized; 2,247,601 and 4,451,343
shares issued and outstanding. . . . . 498 986
Additional paid-in capital. . . . . . . . 178 10,440
Retained earnings . . . . . . . . . . . . 4,978 5,405
Currency translation adjustment . . . . . (3) (18)
Total shareholders' equity. . . . . . . 5,651 16,813

Total liabilities and shareholders' . . $ 15,931 $ 20,157
equity
<FN>

The balance sheet at September 30, 1997 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements.

See accompanying notes.
</TABLE>
<TABLE>

<CAPTION>

BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(Unaudited)


<S> <C> <C> <C> <C>
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
March March March March
31,1997 31,1998 31,1997 31,1998

Product revenue. . . . . . . $ 2,503 $ 2,859 $ 4,877 $ 5,501
Services revenue . . . . . . 1,145 1,591 2,287 3,279
Total revenue . . . . . . 3,648 4,450 7,164 8,780

Cost of product revenue. . . 792 930 1,470 1,879
Cost of services revenue . . 728 970 1,387 1,867
Total cost of revenue . . 1,520 1,900 2,857 3,746
Gross profit . . . . . . . . 2,128 2,550 4,307 5,034

Operating expenses:
Selling . . . . . . . . . 966 1,100 2,046 2,171
Research and development. 342 598 706 1,074
General and . . . . . . . 360 525 748 1,137
administrative

Total Operating. . . . 1,668 2,223 3,500 4,382
Expenses
Operating income . . . . . . 460 327 807 652

Interest income. . . . . . . 0 35 3 50
Interest expense . . . . . . (25) (16) (48) (38)
Other income (expense) . . . (7) (13) (15) (10)
Gain on sale of property . . 23 17 23 44
and equipment

Income before income taxes . 451 350 770 698
Income taxes . . . . . . . . 186 119 317 271
Net income . . . . . . . . . $ 265 $ 231 $ 453 $ 427

Net income available to. . . $ 265 $ 231 $ 426 $ 427
common shareholders

Basic net income per common. $ .12 $ .05 $ .19 $ .11
share

Diluted net income per . . . $ .09 $ .05 $ .14 $ .10
common and common
equivalent share

Basic weighted average . . . 2,202,609 4,444,016 2,194,545 3,749,714
common shares outstanding
Diluted weighted average . . 3,094,082 4,598,848 3,092,245 4,168,120
common and common
equivalent shares
outstanding
<FN>

See accompanying notes.
</TABLE>
<TABLE>

<CAPTION>

BIOANALYTICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)


<S> <C> <C>
Six Months Six Months
Ended Ended
March 31, March 31,
1997 1998
Operating activities:
Net income. . . . . . . . . . . . . . . . . . . $ 453 $ 427
Adjustments to reconcile net income to net
cash provided by operating activities:

Depreciation and amortization. . . . . . . . 299 361
Deferred income taxes. . . . . . . . . . . . 264 50
Changes in operating assets and liabilities:
Accounts receivable . . . . . . . . . . . (452) 44
Inventories . . . . . . . . . . . . . . . (206) (193)
Other assets. . . . . . . . . . . . . . . (86) 110
Accounts payable. . . . . . . . . . . . . (179) (54)
Income taxes payable. . . . . . . . . . . 30 (17)
Accrued expenses and customer advances. . 257 12
Net cash provided by operating activities . . . 380 740
Investing activities:
Capital expenditures. . . . . . . . . . . . . . (1,218) (1,397)
Payments for purchase of net assets of
Vetronics, Inc. net of cash acquired. . . . . . -- (326)
Net cash used by investing activities . . . . . (1,218) (1,723)

Financing activities:
Borrowings of long-term debt 1264 ----
Payments of long-term debt. . . . . . . . . . . (437) (4,984)
Borrowings on lines of credit --- 860
Payments on lines of credit --- (1,573)
Net proceeds from initial public offering --- 9,362
Net proceeds from the exercise of stock options 40 157
Redemption of preferred shares (325) ----
Other --- (15)
Net cash provided by financing activities . . . 542 3,807
Net increase (decrease) in cash and cash
Equivalents. . . . . . . . . . . . . . . . . (296) 2,824
Cash and cash equivalents at beginning of . . . 595 161
Period
Cash and cash equivalents at end of period. . . $ 299 $ 2,985
<FN>

See accompanying notes.
</TABLE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

(1) DESCRIPTION OF THE BUSINESS

Bioanalytical Systems, Inc. and its subsidiaries (the "Company")
manufacture scientific instruments for use in the determination of trace
amounts of organic compounds in biological, environmental and industrial
materials. The Company sells its equipment and software for use in
industrial, governmental and academic laboratories. The Company also engages
in laboratory services, consulting and research related to analytical
chemistry and chemical instrumentation. The Company's customers are located
in the United States and throughout the world.

(2) INTERIM FINANCIAL STATEMENTS PRESENTATION

The accompanying interim financial statements are unaudited and have been
prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission ("SEC") regarding interim financial
reporting. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements, and therefore these consolidated financial statements
should be read in conjunction with the Company's audited consolidated
financial statements, and the notes thereto, for the year ended September 30,
1997. In the opinion of management, the consolidated financial statements for
the three month periods and the six month periods ended March 31, 1997 and
1998 include all normal and recurring adjustments which are necessary for a
fair presentation of the results of the interim periods. The results of
operations for the three month period and the six month period ended March 31,
1998 are not necessarily indicative of the results for the year ending
September 30, 1998.

<TABLE>

<CAPTION>

(3) INVENTORIES
Inventories consisted of (in thousands):


<S> <C> <C>
September 30, March 31,
1997 1998

Raw materials. . $ 909 $ 998
Work in progress 278 305
Finished goods . 801 879
1,988 2,182
LIFO reserve . . (77) (77)
Total LIFO cost. $ 1,911 2,105
</TABLE>



(4) NET INCOME PER COMMON SHARE

In 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, Earnings per Share. Statement 128
replaced the previously reported primary and fully diluted earnings per share
with basic and diluted earnings per share. Unlike primary earnings per share,
basic earnings per share excludes any dilutive effects of options, warrants,
and convertible securities. Diluted earnings per share is very similar to the
previously reported fully diluted earnings per share. All earnings per share
amounts for all periods have been presented, and where necessary, restated to
conform to the Statement 128 requirements.

(5) INITIAL PUBLIC OFFERING

On November 26, 1997, the Company completed an initial public offering of
1,250,000 Common Shares at an offering price of $8.00 per share. On December
19, 1997, the underwriters exercised an option to purchase an additional
100,000 Common Shares. The net proceeds to the Company from the public
offering and the exercise of the over-allotment option by the underwriters,
after deducting the underwriting discounts and commissions and offering
expenses payable by the Company, were approximately $9.4 million. Upon the
closing of the offering, all of the Company's outstanding Convertible
Preferred Shares were converted into 752,399 Common Shares.

(6) ACQUISITION

On October 31, 1997, the Company acquired all of the outstanding capital
stock of Vetronics, Inc. ("Vetronics"), which manufactures, markets and sells,
electrocardiograph and vital sign monitors for small to midsize animals. The
total purchase price consisted of $200,000 in cash, $150,000 in notes payable
on July 1, 1998 and a contingent amount to be based upon the profitability of
sales from products manufactured by Vetronics during the next two years. The
Company believes that the addition of these products will enhance its position
as a producer of physiology instrumentation.

(7) SUBSEQUENT EVENT

On April 2, 1998, the Company agreed to purchase three Benchtop Triple
Stage Quadruple Mass Spectrometers. The purchase price of these instruments is
approximately $770,000, with payment terms of 50% due upon placement of the
order, 40% due upon delivery and 10% due upon acceptance of the instruments.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

This Form 10-Q may contain "forward-looking statements," within the
meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E
of the Securities Exchange Act of 1934, as amended. Those statements include,
but may not be limited to, discussions regarding the Company's intent, belief
or current expectations with respect to (i) the Company's strategic plans;
(ii) the Company's future profitability, (iii) the Company's capital
requirements; (iv) industry trends affecting the Company's financial condition
or results of operations; (v) the Company's sales or marketing plans or (vi)
the Company's growth strategy. Investors in the Company's Common Shares are
cautioned that reliance on any forward-looking statement involves risks and
uncertainties, including the risk factors contained in the Company's
Registration Statement on Form S-1, File No. 333-36429. Although the Company
believes that the assumptions on which the forward-looking statements
contained herein are reasonable, any of those assumptions could prove to be
inaccurate, and as a result, the forward-looking statements based upon those
assumptions also could be incorrect. In light of the uncertainties inherent
in any forward-looking statement, the inclusion of a forward- looking
statement herein should not be regarded as a representation by the Company
that the Company's plans and objectives will be achieved.

RESULTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 1998 COMPARED WITH THREE MONTHS ENDED MARCH 31,
1997

Total revenue for the three months ended March 31, 1998 increased 22.0% to
approximately $4.5 million from approximately $3.6 million for the three
months ended March 31, 1997. The net increase of approximately $900,000 was
primarily due to increased revenue from services, which increased to
approximately $1.6 million in the three months ended March 31, 1998 from
approximately $1.1 million in the three months ended March 31, 1997 as a
result of the expansion of types and volume of services provided by the
Company. During this same period, product revenue increased to approximately
$2.9 million for the three months ended March 31, 1998 from approximately $2.5
million for the three months ended March 31, 1997 primarily as a result of
sales of a new line of physiology monitoring products acquired in connection
with the acquisition of Vetronics on October 31, 1997.

Total cost of revenue for the three months ended March 31, 1998 increased
25.0% to approximately $1.9 million from approximately $1.5 million for the
three months ended March 31, 1997. This increase of approximately $400,000
was primarily due to the additional cost of revenue related to the services
unit. Cost of product revenue increased to 32.5% as a percentage of product
revenue for the three months ended March 31, 1998 from 31.6% of product
revenue for the three months ended March 31, 1997, due to a change in product
mix. Cost of service revenue decreased to approximately 61.0% as a percentage
of service revenue for the three months ended March 31, 1998 from
approximately 63.6% of services revenue for the three months ended March 31,
1997 due to an increase in the level of services revenue.

Selling expenses for the three months ended March 31, 1998 increased 13.9%
to approximately $1,100,000 from approximately $966,000 for the three months
ended March 31, 1997 due to the promotion of the new homocysteine kit.
Research and development expenses for the three months ended March 31, 1998
increased 74.9% to approximately $598,000 from approximately $342,000 for the
three months ended March 31, 1997 due to the acceleration of product
development and increased activity in the NIH and NASA grant projects.
General and administrative expenses for the three months ended March 31, 1998
increased 45.8% to approximately $525,000 from approximately $360,000 for the
three months ended March 31, 1997, primarily as a result of increased property
taxes incurred in connection with the Company's purchase and construction of
additional facilities as well as increased general and administrative expenses
related to the Company's defense of a patent infringement suit.

Other income (expense), net, was approximately $23,000 in the three months
ended March 31, 1998, as compared to approximately $(9,000) in the three
months ended March 31, 1997 as a result of a reduction in net interest expense
due to an increase in cash and cash equivalents resulting from the initial
public offering.

The Company's effective tax rate for the three months ended March 31, 1998
was 34.0% as compared to 41.2% for the three months ended March 31, 1997.
This decrease was due in part, to improving profitability from operations in
the United Kingdom.

SIX MONTHS ENDED MARCH 31, 1998 COMPARED WITH SIX MONTHS ENDED MARCH 31, 1997

Total revenue for the six months ended March 31, 1998 increased 22.6% to
approximately $8.8 million from approximately $7.2 million for the six months
ended March 31, 1997. The net increase of approximately $1,600,000 was
primarily due to increased revenue from services, which increased to
approximately $3.3 million in the six months ended March 31, 1998 from
approximately $2.3 million in the six months ended March 31, 1997 as a result
of the expansion of types and volume of services provided by the Company.
During this same period, product revenue increased to approximately $5.5
million for the six months ended March 31, 1998 from approximately $4.9
million for the six months ended March 31, 1997 primarily as a result of
sales of a new line of physiology monitoring products acquired in connection
with the acquisition of Vetronics on October 31, 1997.
.

Total cost of revenue for the six months ended March 31, 1998 increased
31.1% to approximately $3.7 million from approximately $2.9 million for the
six months ended March 31, 1997. This increase of approximately $800,000 was
primarily due to the additional cost of revenue related to the services unit.
Cost of product revenue increased to 34.2% as a percentage of product revenue
for the six months ended March 31, 1998 from 30.1% of product revenue for the
six months ended March 31, 1997, due to a change in product mix. Cost of
services revenue decreased to approximately 56.9% as a percentage of service
revenue for the six months ended March 31, 1998 from approximately 60.6% of
services revenue for the six months ended March 31, 1997 due to an increase in
the level of services revenue.

Selling expenses for the six months ended March 31, 1998 increased 6.1% to
approximately $2,171,000 from approximately $2,046,000 for the six months
ended March 31, 1997 due to the promotion of the new homocysteine kit.
Research and development expenses for the six months ended March 31, 1998
increased 52.1% to approximately $1,074,000 from approximately $706,000 for
the six months ended March 31, 1997 due to the acceleration of product
development and increased activity in the NIH and NASA grant projects.
General and administrative expenses for the six months ended March 31, 1998
increased 52.0% to approximately $1,137,000 from approximately $748,000 for
the six months ended March 31, 1997, primarily as a result of increased
property taxes incurred in connection with the Company's purchase and
construction of additional facilities as well an increased general and
administrative expenses related to the Company's defense of a patent
infringement suit.


Other income (expense), net, was approximately $46,000 in the six months
ended March 31, 1998, as compared to approximately $(37,000) in the six months
ended March 31, 1997
as a result of a reduction in net interest expense due to an increase in cash
and cash equivalents resulting from the initial public offering.

The Company's effective tax rate for the six months ended March 31, 1998
was 38.8% as compared to 41.2% for the six months ended March 31, 1997. This
decrease was due in part, to improving profitability from operations in the
United Kingdom.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 1998, the Company had cash and cash equivalents of
approximately $3.0 million compared to cash and cash equivalents of
approximately $161,000 at September 30, 1997. The increase in cash resulted
primarily from the Company's initial public offering of Common Shares in
November of 1997.

The Company's net cash provided by operating activities was approximately
$740,000 for the six months ended March 31, 1998 as compared to approximately
$380,000 for the first six months of 1997. The positive cash flow from
operations during the six months ended March 31, 1998 was primarily the result
of net income of approximately $427,000 plus non-cash charges of approximately
$411,000 partially offset by a net change of approximately $98,000 in
operating assets and liabilities. The most significant increase in operating
assets related to inventory, which increased to approximately $2.1 million at
March 31, 1998 from approximately $1.9 million at September 30, 1997.

Cash used by investing activities increased to approximately $1.7 million
for the six months ended March 31, 1998 from approximately $1.2 million for
the six months ended March 31, 1997, primarily as a result of the Company's
construction of additional facilities. Cash provided by financing activities
for the six months ended March 31, 1998 was approximately $3.8 million due to
the initial public offering in November of 1997, partially offset by the
reduction of debt.

Total expenditures by the Company for property and equipment were
approximately $1,218,000 and $1,397,000 for the six months ended March 31,
1997 and 1998, respectively. Expenditures made in connection with the
expansion of the Company's operating facilities and purchases of laboratory
equipment account for the largest portions of these expenditures. The Company
anticipates increased levels of capital expenditures in fiscal 1998 and fiscal
1999 in connection with the renovation and construction of additional
facilities and the purchase of additional laboratory equipment. The Company,
however, currently has no firm commitments for capital expenditures other than
in connection with the expansion of the Company's facilities. The Company
also expects to make other investments to expand its operations through
internal growth and strategic acquisitions, alliances and joint ventures.

Based on its current business activities, the Company believes that cash
generated from its operations, amounts available under its existing bank lines
of credit and the remaining net proceeds from its initial public offering will
be sufficient to fund its anticipated working capital and capital expenditure
requirements.

The Company has a $7.5 million bank line of credit agreement, which
expires March 1, 1999. Interest is charged at the prime rate (8.5% at March
31, 1998). The line is not currently being utilized. The line is
collateralized by substantially all inventories and accounts receivable.

EFFECT OF NEW ACCOUNTING PRONOUNCEMENT

In 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, Earnings per Share. Statement 128
replaced the previously reported primary and fully diluted earnings per share
with basic and diluted earnings per share. Unlike primary earnings per share,
basic earnings per share excludes any dilutive effects of options, warrants,
and convertible securities. Diluted earnings per share is very similar to the
previously reported fully diluted earnings per share. All earnings per share
amounts for all periods have been presented, and where necessary, restated to
conform to the Statement 128 requirements.


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In April, 1997, CMA Microdialysis Holding A.B. ("CMA") filed an action
against the Company in the United States District Court for the District of
New Jersey which CMA alleged that the Company's microdialysis probes infringe
U. S. Patent No. 4,694,832. The Company has filed an answer in which it
denied infringement and in which it asserted that the patent on which CMA
relies is invalid. Sales of the product in question accounted for less than
$75,000 of the Company's revenues in fiscal 1997. The matter is now in the
discovery stage. Management intends to continue a vigorous defense of CMA's
claims, and believes that the ultimate outcome of this matter will not have a
material adverse effect on the Company's financial condition or result of
operations, but legal expenses associated with the defense of this suit may
have an adverse effect on current earnings.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.


In the first and second fiscal quarter, the Company issued an aggregate of
101,343 Common Shares to certain employees and members of the Company's Board
of Directors upon the exercise of stock options for an aggretate $158,459.29.
The issuance of these Common Shares was exempt from registration under the
Securities Act of 1933, as amended, by reason of Section 4(2) thereof and Rule
701 of the Securities and Exchange Commission (the "SEC").

On November 24, 1997, the SEC declared effective the Company's
Registration Statement on Form S-1, File Number 333-36429. Item 2 of Part II
of the Company's Form 10-Q for the period ended December 31, 1997 set forth
information regarding the Company's proceeds from the offering pursuant to
such registration statement and the Company's use of such proceeds. The
following information has changed since such disclosure.


The net proceeds received by the Company from the offering were $9,362,000
after deducting expenses paid by the Company of $1,438,000 consisting of
$756,000 for underwriting discounts and commissions and $682,000 for legal,
accounting and printing fees.

As of March 31, 1998, the Company had used approximately $6,600,000 of the
net proceeds from the offering to repay indebtedness. The balance of the net
proceeds, or approximately $2,800,000, was invested in money market funds.

ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS.

At the annual meeting of shareholders of the Company held on January 22,
1998, the following actions were taken:

1. The following directors were elected to serve until the next annual
meeting until their successors are duly elected and qualified, as follows:

<TABLE>

<CAPTION>



<S> <C> <C> <C>
Votes
Votes For Withheld Abstentions
William E. Baitinger 2,140,316 -- --
Michael K. Campbell. 2,140,316 -- --
Thomas A. Hiatt. . . 2,140,316 -- --
Peter T. Kissinger . 2,140,316 -- --
John A. Kraeutler. . 2,140,316 -- --
William C. Mulligan. 2,140,316 -- --
Ronald E. Shoup. . . 2,140,316 -- --
Leigh Thompson . . . 2,140,316 -- --
</TABLE>


2. A proposal to approve the selection by the Board of Directors of Ernst &
Young LLP as the Company's independent auditors for the fiscal year ending
September 30, 1998 was approved by the vote of 2,140,316 shares For.

ITEM 5. OTHER INFORMATION.

On May 7, 1998 Thomas A. Hiatt and William C. Mulligan resigned
from the Board of Directors of the Company. Neither Mr. Hiatt nor Mr.
Mulligan had any disagreements with the Company on any matter relating to
the Company's operations, policies or practices.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

3.1 Second Amended and Restated Articles of Incorporation of
Bioanalytical Systems, Inc. (Incorporated by reference to Exhibit 3.1 to Form
10-Q, File No. 000-23357)


3.2 Second Restated Bylaws of Bioanalytical Systems, Inc. (Incorporated
by reference to Exhibit 3.2 to Form 10-Q, File No. 000-23357).

4.1 Specimen Certificate for Common Shares (Incorporated by reference
to Exhibit 4.1 to Registration Statement on Form S-1, Registration No.
33-36429)

10.1 Form of Employee Confidentiality Agreement (Incorporated by
reference to Exhibit 10.1 to Registration Statement on Form S-1, Registration
No. 333-36429).

10.2 Bioanalytical Systems, Inc. Outside Director Stock Option Plan
(Incorporated by reference to Exhibit 10.2 to Registration Statement on Form
S-1, Registration No. 333-36429).

10.3 Form of Bioanalytical Systems, Inc. Outside Director Stock Option
Agreement (Incorporated by reference to Exhibit 10.3 to Registration
Statement on Form S-1, Registration No. 333-36429).

10.4 Bioanalytical Systems, Inc. 1990 Employee Incentive Stock Option
Plan (Incorporated by reference to Exhibit 10.4 to Registration Statement on
Form S-1, Registration No. 333-36429).

10.5 Form of Bioanalytical Systems, Inc. 1990 Employee Incentive Stock
Option Agreement (Incorporated by reference to Exhibit 10.5 to Registration
Statement on Form S-1, Registration No. 333-36429).

10.6 Security Agreement by and between Bioanalytical Systems, Inc. and
Bank One, Lafayette, N.A., dated August 22, 1996 (Incorporated by reference to
Exhibit 10.17 to Registration Statement on Form S-1, Registration No.
333-36429).

10.7 Master Lease Agreement by and between Bioanalytical Systems, Inc.
and Bank One Leasing Corporation dated November 9, 1994 (Incorporated by
reference to Exhibit 10.18 to Registration Statement on Form S-1, Registration
No. 333-36429).

10.8 Financing Lease by and between Bioanalytical Systems, Inc. and
Bank One Leasing Corporation, dated November 9, 1994 (Incorporated by
reference to Exhibit 10.19 to Registration Statement on Form S-1, Registration
No. 333-36429).

10.9 Credit Agreement by and between Bioanalytical Systems, Inc. and
Bank One, Indiana, N.A., dated August 30, 1996 (Incorporated by reference to
Exhibit 10.24 to Registration Statement on Form S-1, Registration No.
333-36429).

10.10 Bioanalytical Systems, Inc. 1997 Employee Incentive Stock Option
Plan (Incorporated by reference to Exhibit 10.26 to Registration Statement on
Form S-1, Registration No. 333-36429).

10.11 Form of Bioanalytical Systems, Inc. 1997 Employee Incentive Stock
Option Agreement (Incorporated by reference to Exhibit 10.27 to Registration
Statement on Form S-1, Registration No. 333-36429).

10.12 1997 Bioanalytical Systems, Inc. Outside Director Stock Option
Plan (Incorporated by reference to Exhibit 10.28 to Registration Statement on
Form S-1, Registration No. 333-36429).

10.13 Form of Bioanalytical Systems, Inc. 1997 Outside Director Stock
Option Agreement (Incorporated by reference to Exhibit 10.29 to Registration
Statement on Form S-1, Registration No. 333-36429)

10.14 Business Loan Agreement by and between Bioanalytical Systems,
Inc., and Bank One, Indiana, N.A. dated March 1, 1998.

10.15 Commercial Security Agreement by and between Bioanalytical
Systems, Inc. and Bank One, Indiana, N.A., dated March 1, 1998.

10.16 Negative Pledge Agreement by and between Bioanalytical Systems, Inc.
and Bank One, Indiana, N.A., dated March 1, 1998.

10.17 Promissory Note for $7,500,000 executed by Bioanalytical Systems,
Inc. in favor of Bank One, N.A., dated March 1, 1998.

11.1 Statement Regarding Computation of Per Share Earnings.

27.1 Financial Data Schedule

(b) Reports on Form 8-K

No report on Form 8-K was filed during the quarter for which this report
was filed.
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized:

BIOANALYTICAL SYSTEMS, INC.

By /s/ PETER T. KISSINGER

Peter T. Kissinger
President and Chief Executive Officer

Date: May 15, 1998


By /s/ DOUGLAS P. WIETEN

Douglas P. Wieten
Chief Financial Officer,
Treasurer and Controller
(Principal Financial and Accounting Officer)

Date: May 15, 1998
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BIOANALYTICAL SYSTEMS, INC.
FORM 10-Q
INDEX TO EXHIBITS


<S> <C> <C>
Number
Assigned in
Regulation S-K. Exhibit
Item 601. . . . Number Description of Exhibit
(2) No Exhibit.
(3) . . . . . . 3.1 Second Amended and Restated Articles of
Incorporation of Bioanalytical Systems, Inc.
(Incorporated by to Exhibit 3.1 to Form 10-Q,
File NO. 000-23357)
3.2 Second Restated Bylaws of Bioanalytical
Systems, Inc. (Incorporated by reference to
Exhibit 3.2 to Form 10-Q, File NO. 000-23357).
(4) . . . . . . 4.1 Specimen Certificate for Common Shares
(Incorporated by reference to Exhibit 4.1 to
Registration Statement on Form S-1,
Registration No. 33-36429)
4.2 See Exhibits 3.1 and 3.2
(10). . . . . . 10.1 Form of Employee Confidentiality Agreement
(Incorporated by reference to Exhibit 10.1 to
Registration Statement on Form S-1,
Registration No. 333-36429).
10.2 Bioanalytical Systems, Inc. Outside Director
Stock Option Plan (Incorporated by reference
to Exhibit 10.2 to Registration Statement on
Form S-1, Registration No. 333-36429).
10.3 Form of Bioanalytical Systems, Inc. Outside
Director Stock Option Agreement
(Incorporated by reference to Exhibit 10.3 to
Registration Statement on Form S-1,
Registration No. 333-36429).
10.4 Bioanalytical Systems, Inc. 1990 Employee
Incentive Stock Option Plan (Incorporated
by reference to Exhibit 10.4 to Registration
Statement on Form S-1, Registration No.
333-36429).
10.5 Form of Bioanalytical Systems, Inc. 1990
Employee Incentive Stock Option Agreement
(Incorporated by reference to Exhibit 10.5 to
Registration Statement on Form S-1,
Registration No. 333-36429).
10.6 Security Agreement by and between
Bioanalytical Systems, Inc. and Bank One,
Lafayette, N.A., dated August 22, 1996
(Incorporated by reference to Exhibit 10.17
to Registration Statement on Form S-1,
Registration No. 333-36429).
10.7 Master Lease Agreement by and between
Bioanalytical Systems, Inc. and Bank One
Leasing Corporation dated November 9, 1994
(Incorporated by reference to Exhibit 10.18
to Registration Statement on Form S-1,
Registration No. 333-36429).
10.8 Financing Lease by and between Bioanalytical
Systems, Inc. and Bank One Leasing
Corporation, dated November 9, 1994
(Incorporated by reference to Exhibit 10.19
to Registration Statement on Form S-1,
Registration No. 333-36429).
10.9 Credit Agreement by and between
Bioanalytical Systems, Inc. and Bank One,
Indiana, N.A., dated August 30, 1996
(Incorporated by reference to Exhibit 10.24
to Registration Statement on Form S-1,
Registration No. 333-36429).
10.10 Bioanalytical Systems, Inc. 1997 Employee
Incentive Stock Option Plan (Incorporated by
reference to Exhibit 10.26 to Registration
Statement on Form S-1, Registration No. 333-36429).

10.11 Form of Bioanalytical Systems, Inc. 1997
Employee Incentive Stock Option Agreement
(Incorporated by reference to Exhibit 10.27
to Registration Statement on Form S-1,
Registration No. 333-36429).
10.12 1997 Bioanalytical Systems, Inc. Outside
Director Stock Option Plan (Incorporated by
reference to Exhibit 10.28 to Registration
Statement on Form S-1, Registration
No. 333-36429).
10.13 Form of Bioanalytical Systems, Inc. 1997
Outside Director Stock Option Agreement
(Incorporated by reference to Exhibit 10.29
to Registration Statement on Form S-1,
Registration No. 333-36429).
10.14 Business Loan Agreement by and between
Bioanalytical Systems, Inc., and Bank One,
Indiana, N.A. dated March 1, 1998.
10.15 Commercial Security Agreement by and between
Bioanalytical Systems, Inc. and Bank One,
Indiana, N.A., dated March 1, 1998.
10.16 Negative Pledge Agreement by and between
Bioanalytical Systems, Inc. and Bank One,
Indiana, N.A., dated March 1, 1998.
10.17 Promissory Note for $7,500,000 executed by
Bioanalytical Systems, Inc. in favor of Bank
One, N.A., dated March 1, 1998.
(11). . . . . . 11.1 Statement Regarding Computation of Per
Share Earnings.
(12) No Exhibit
(13) No Exhibit
(15) No Exhibit
(18) No Exhibit
(19) No Exhibit
(22) No Exhibit
(23) No Exhibit
(24) No Exhibit
(27). . . . . . 27.1 Financial Data Schedule
(99) No Exhibit
</TABLE>