Financial Report: BASi

BASi

3Q Revenues: $12.6 million (26%)

3Q Earnings: $449,000 (loss of $1.8 million 3Q2006)

YTD Revenues: $34.8 million (+8%)

YTD Earnings: $1.1 million (loss of $1.9 million YTD2006)

Comments: Revenue growth was driven by a $2.7 million, or 34%, increase in service revenues, led by improvements in toxicology and clinical research operations. YTD growth was the result of a 10% increase in service revenues. Operating expenses in the quarter were $3 million, a decrease of $1.9 million, and were $8.4 million YTD, down $4.4 million. Expenses in 2006 included $1.3 million in write-downs of asset values at the company’s Baltimore clinic. The remainder of the decrease is the result of job cuts at the beginning of the 2007 fiscal year.