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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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):
April 25, 2007
ABAXIS, Inc.
(Exact name of registrant as specified in its charter)
California 000-19720 77-0213001
(State or other jurisdiction of (Commission File No.) (I.R.S. Employer
incorporation) Identification No.)
3240 Whipple Road, Union City, CA 94587
(Address of principal executive offices)
Registrant's telephone number, including area code:
(510) 675-6500
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
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ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; APPOINTMENT OF CERTAIN
OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
Fiscal 2008 Base Salary and Target Bonus
On April 25, 2007, the Board of Directors (the "Board") of Abaxis, Inc.
(the "Company"), after considering a peer company analysis of total compensation
for executive officers prepared in early 2006 by an independent compensation
expert and the recommendation of the Compensation Committee of the Board,
approved the following fiscal 2008 base salaries for the following named
executive officers effective May 1, 2007: (i) Clinton H. Severson, Chairman of
the Board, President and Chief Executive Officer, $338,000; (ii) Alberto R.
Santa Ines, Chief Financial Officer and Vice President of Finance, $185,000;
(iii) Robert B. Milder, Chief Operations Officer, $208,000; (iv) Vladimir E.
Ostoich, Ph.D., Vice President of Government Affairs and Vice President of
Marketing for the Pacific Rim, $203,000; and (v) Kenneth P. Aron, Ph.D., Vice
President of Research and Development, $193,000.
On the same date, the Board approved the fiscal 2008 target bonus levels
for executive officers. The Company's named executive officers will be eligible
for a fiscal 2008 bonus with a participation rate as follows: (i) Clinton H.
Severson, 142% of base salary; (ii) Alberto R. Santa Ines, 149% of base salary;
(iii) Robert B. Milder, 151% of base salary; (iv) Vladimir E. Ostoich, Ph.D.,
135% of base salary; and (v) Kenneth P. Aron, Ph.D., 142% of base salary (each,
a "Target Bonus").
A bonus will be earned only if the Company achieves 90% or more of one or
more of its pre-established quarterly net sales and/or pre-tax income goals
during fiscal 2008. Payment of the Target Bonus, as identified above, is equally
weighted at 50% for achievement of the Company's quarterly net sales performance
goal and 50% for achievement of the Company's quarterly pre-tax income
performance goal. If the Company was to achieve 90% or more, but less than 100%,
of only one performance goal, the payout would be limited to 25% of the Target
Bonus. The Target Bonus will be earned by named executive officers if at least
100% of both net sales and pre-tax income performance goals are achieved. The
maximum bonus payout is capped at 200% of the Target Bonus, provided the Company
achieves greater than 133% of at least one of its two performance goals. If
earned, a bonus payment will be paid quarterly at a rate of 15% for first
quarter, 25% the second and third quarters, and 35% for the fourth quarter.
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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.
Date: May 1, 2007
ABAXIS, INC.
By: /s/ Alberto Santa Ines
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Alberto Santa Ines
Vice President, Finance and
Chief Financial Officer
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