8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 12, 2008

BIOANALYTICAL SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Indiana	0-23357	35-1345024
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

2701 KENT AVENUE WEST LAFAYETTE, INDIANA	47906-1382
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (765) 463-4527

The information provided in Item 2.02 and Item 9.01 of this Form 8-K is being furnished and shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 2.02 and Item 9.01 of this Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 2.02.Results of Operations and Financial Condition.

On May 12, 2008, Bioanalytical Systems, Inc. issued a press release announcing results for its second quarter and first six months of fiscal 2008. The full text of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

Item 9.01.Financial Statements and Exhibits.

(a)Not applicable.

(b)Not applicable.

(c)Not applicable.

(d)Exhibits

99.1Bioanalytical Systems, Inc. press release, issued May 12, 2008.

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 hereunto duly authorized.

	Bioanalytical Systems, Inc.
Date: May 12, 2008	By:	/s/ Michael R. Cox
		Michael R. Cox
		Vice President, Finance and Administration, Chief Financial Officer and Treasurer

Exhibit Index

Exhibit No.	Description
99.1	Bioanalytical Systems, Inc. press release, issued May 12, 2008.

EX-99.1

FOR MORE INFORMATION: Michael R. Cox

Phone 765.497.5829

mcox@bioanalytical.com

Bioanalytical Systems, Inc. Reports Financial Results for First Half of Fiscal 2008

WEST LAFAYETTE, Ind., May 12, 2008— Bioanalytical Systems, Inc. (Nasdaq: BASI) today reported financial results for its second quarter and first six months of fiscal 2008, ended March 31, 2008.

Revenue decreased 2.5% to $11.0 million compared to $11.3 million for the quarter ended March 31, 2007. The net loss for the second quarter of fiscal 2008 was $136,000, or $0.03 per share, compared to net income of $124,000, or $0.03 per basic and diluted share for the second quarter of fiscal 2007.

In the Service segment, the Company experienced increased revenues in its toxicology, pharmaceutical analysis and bioanalytical analysis, which were offset by reduced revenues in clinical operations. Revenues in the Product segment decreased with Culex automated in vivo sampling systems declining over 50% from the prior year period.

Cost of revenue for the quarter ended March 31, 2008 was $7.6 million, or 69.0% of revenue, compared to $8.1 million, or 71.9% of revenue, for the quarter ended March 31, 2007. Margins improved in the Service segment due to increased revenues, which uses more of the total capacity and absorbs more of the fixed costs in this segment. Product segment margins also increased as a result of higher absorption of manufacturing costs during the quarter.

The Company also experienced increased selling, research and development, and general and administrative expenses, which in total were $3.3 million in the second quarter of fiscal 2008, compared to $2.7 million in the comparable quarter of fiscal 2007. The increase was mainly due to expanded sales efforts in our West Lafayette and UK sites, stock option expense for new option grants in the first quarter of fiscal 2008, and expenses for attracting and hiring new management personnel in our Baltimore and UK facilities.

Net income was also negatively impacted in the current quarter from state income taxes in states where we had operating profits, even though we had a consolidated loss.

For the six months ended March 31, 2008, revenue increased 1.3% to $22.5 million compared to $22.2 million for the six months ended March 31, 2007. The net loss for the first half of fiscal 2008 was $152,000, or $0.03 per share, compared to net income of $680,000, or $0.14 per basic and diluted share for the first half of fiscal 2007.

In the Service segment, the Company experienced a 5.0% increase in revenues mainly due to its toxicology, pharmaceutical analysis and bioanalytical analysis, which were offset by reduced revenues in clinical operations. Revenues in the Product segment decreased 11.9% with both Vetronics and Culex automated in vivo sampling systems declining from the prior year period.

Cost of revenue for the six months ended March 31, 2008 was $15.6 million, or 69.2% of revenue, compared to $15.6 million, or 70.4% of revenue, for the six months ended March 31, 2007. Margins improved in the Service segment due to increased revenues, which uses more of the total capacity and absorbs more of the fixed costs in this segment, and improved in the Product segment where higher absorption of manufacturing costs led to higher margins, despite lower revenues.

The Company experienced increased selling, research and development, and general and administrative expenses, which in total were $6.5 million in the first half of fiscal 2008, compared to $5.4 million in the comparable period of fiscal 2007. The increase was mainly due to expanded sales efforts in our West Lafayette and UK sites, stock option expense for new option grants in the first quarter of fiscal 2008, expenses for attracting and hiring new management personnel in our Baltimore and UK facilities, and higher spending for computer supplies and infrastructure.

Further, net income was negatively impacted in the six months of the current fiscal year by the provision for state income taxes in states where we had operating profits, even though we had a consolidated loss, creating a disproportionate effective tax rate for the first half of the year.

About Bioanalytical Systems, Inc.

BASi is a pharmaceutical development company providing contract research services and monitoring instruments to the world’s leading drug development companies and medical research organizations. The company focuses on developing innovative services and products that increase efficiency and reduce the cost of taking a new drug to market. Visit www.bioanalytical.com for more about BASi.

This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties

related to the development, marketing and salest of products and services, changes in technology, industry standards and regulatory standards, and various market and operating risks detailed in the company’s filings with the Securities and Exchange Commission.

[TURN THE PAGE FOR CONSOLIDATED STATEMENTS OF OPERATIONS]

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share amounts)

	Three Months Ended March 31,						Six Months Ended March 31,
	2008			2007			2008			2007
Service revenue	$	9,280		$	8,726		$	18,202		$	17,334
Product revenue		1,751			2,585			4,281			4,861
Total revenue		11,031			11,311			22,483			22,195
Cost of service revenue		6,931			6,968			13,844			13,585
Cost of product revenue		680			1,163			1,714			2,040
Total cost of revenue		7,611			8,131			15,558			15,625
Gross profit		3,420			3,180			6,925			6,570
Operating expenses:
Selling		874			673			1,666			1,352
Research and development		183			101			371			456
General and administrative		2,250			1,858			4,502			3,497
(Gain) loss on sale of property and equipment		2			95			(11	)		83
Total operating expenses		3,309			2,727			6,528			5,388
Operating income		111			453			397			1,182
Interest income		2			12			29			24
Interest expense		(203	)		(230	)		(451	)		(471	)
Other income		1			---			4			3
Income (loss) before income taxes		(89	)		235			(21	)		738
Income taxes		47			111			131			58
Net income (loss)	$	(136	)		124			(152	)	$	680
Net income (loss) per share:
Basic		($ 0.03	)	$	0.03			($ 0.03	)	$	0.14
Diluted		($ 0.03	)	$	0.03			($ 0.03	)	$	0.14
Weighted common and common equivalent
shares outstanding:
Basic		4,912			4,909			4,914			4,907
Diluted		4,912			4,940			4,914			4,924

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