NEWTON, Mass., May 11 /PRNewswire-FirstCall/ -- Microfluidics
International Corporation (OTC Bulletin Board: MFLU), today
reported unaudited financial results for the first quarter ended
March 31, 2010.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090811/NE59652LOGO
)
First quarter and recent accomplishments:
- Generated $4.3 million in revenue
for the first quarter, a 21% increase over the same period in
2009
- Earned net income for the first quarter of $106,000 or $0.01
per share, compared to a loss of $690,000, or $0.07
per share, in the first quarter 2009
- Achieved $366,000 in earnings
before interest, taxes, depreciation and amortization (EBITDA)
- Continued to achieve 60% gross margin target
- Launched the LV1 low volume Microfluidizer® processor—that can
bring scalable high shear processing materials to significantly
smaller sample sizes—eliminating waste and saving customers
money
"The first quarter of 2010 marks
the third consecutive quarter that Microfluidics has generated net
income and consistently achieved our 60% gross margin target," said
Michael C. Ferrara, President and
Chief Executive Officer of Microfluidics. "Our growth is being
driven by continued strong demand for our products in the
biopharmaceutical markets. As we look to the remainder of the year,
our goal is to leverage additional growth from the
biopharmaceutical markets by introducing new products, expanding
our service offerings and continually improving product quality and
customer service."
"We are extremely pleased to report a great start to the year
with revenue growth, strong gross margin and improved
earnings per share in the first quarter," said Peter Byczko, Vice President of Finance and
Chief Accounting Officer. "Our financial results reflect strong
performance in the biopharmaceutical markets and the continued
realization of multiple cost control initiatives implemented over
the last 18 months. We will continue to work to improve the
financial position of the Company."
First Quarter Financial Results:
Revenues for the three months ended March
31, 2010 were $4.3 million, an
increase of $0.7 million, or 21%, as
compared to revenues of $3.5 million
for the three months ended March 31,
2009. North American revenues were $2.6 million, an increase of 10%, as compared to
$2.4 million in the first quarter of
2009. European revenues were $1.2
million, an increase of $0.4
million, or 61%, from $0.7
million for the first quarter of 2009. This increase is
attributable to pricing actions taking effect and appropriately
adjusting our pricing. Our gross margin held at 60% in the first
quarter of 2010. Net income was $106,000, or $0.01
per diluted share, for the three months ended March 31, 2010 as compared to a net loss of
$0.7 million, or ($0.10) per diluted share, for the same period in
2009.
EBITDA was $366,000 for the three
months ended March 31, 2010 compared
with a $480,000 EBITDA loss for the
same period in 2009. EBITDA is a Non-GAAP financial measure. A
reconciliation of GAAP net income to Non-GAAP EBITDA is provided in
the financial tables that accompany this release and is discussed
under the section below titled "Non-GAAP Financial Measures."
Live Webcast:
Microfluidics International Corporation will host a webcast on
Tuesday, May 11, 2010 at 8:30 a.m. Eastern Time. Participants are invited
to attend the call by visiting www.microfluidicscorp.com or by
dialing 866-356-4279 (within the United
States) or 617-597-5394 (outside the United States). The passcode for
participants is 21242730
A replay will be available approximately two hours after the
live call through May 18, 2010. To
access the replay, dial 888-286-8010 (within the United States) or 617-801-6888 (outside
the United States). The passcode
for participants is 42685031. A replay will also be posted on the
Company's website approximately two hours after the live call and
will be available for a period of 30 days.
About Microfluidics International Corporation
Microfluidics International Corporation designs, manufactures
and distributes patented and proprietary high performance
Microfluidizer® materials processing and formulation equipment to
the biotechnology, pharmaceutical, chemical, cosmetics and inkjet
ink industries. The Company applies its 20 plus years of high
pressure processing experience to produce the most uniform and
smallest liquid and suspended solid particles available and has
provided manufacturing systems for nanoparticle products for more
than 15 years.
Microfluidics is a leader in advanced materials processing
equipment for laboratory, pilot scale and manufacturing
applications, offering innovative technology and comprehensive
solutions for nanoparticles and other materials processing and
production.
Non-GAAP Financial Measures:
In addition to the results reported in accordance with generally
accepted accounting standards (GAAP) within this release, the
Company may reference certain information that is considered a
non-GAAP financial measure, including EBITDA, which is defined as
earnings before interest, taxes, depreciation and amortization, and
Adjusted EBITDA, which is defined as earnings before interest,
taxes, depreciation, and amortization, excluding non-cash stock
compensation expense recognized and severance payments. Management
believes these measures are useful and relevant to management for
operational planning and decision making purposes, and informative
to investors in their analysis of the Company's underlying business
and operating performance. Non-GAAP financial measures should not
be considered a substitute for any GAAP measures. Additionally,
non-GAAP measures as presented by the Company may not be comparable
to similarly titled measures reported by other companies. A
reconciliation of GAAP to non-GAAP financial information discussed
in this release is contained in the attached exhibits.
Safe Harbor for Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
as contained in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. You can
identify these statements by the fact that they use words such as
"anticipate," "believe," "estimate," "expect," "intend," "project,"
"plan," "outlook," and other words and terms of similar meaning.
These statements involve a number of risks and uncertainties that
could cause actual results to differ materially from the potential
results discussed in the forward-looking statements. Among the
factors that could cause actual results and outcomes to differ
materially from those contained in such forward-looking statements
are the following: our ability to access sufficient working
capital, including a new working capital line; our continued
compliance with the representations, warranties and covenants under
our existing convertible debenture and revolving line of credit;
our continued history of losses, which includes net losses in four
of the last five fiscal years; the timing and size of customer
orders for our products; the adoption, timing and performance of
new technology and products developed by us; changes and advances
in technology that may make our products obsolete or reduce demand
for our products; our ability to protect and maintain the
confidentiality of our intellectual property; our ability to retain
key employees and our reliance on a new management team; changes in
governmental rules and regulations, including health care and those
regulating the exportation of goods; and general economic and
business conditions, including those adversely effecting the
pharmaceutical and biotechnology industries. For a more detailed
discussion of risks and uncertainties which could cause actual
results to differ from those contained in our forward-looking
statements, see Item 1A, "Risk Factors" in our annual report on
Form 10-K for the fiscal year ended December
31, 2009 and our other periodic reports filed with the SEC.
You should not place undue reliance on our forward-looking
statements, which speak only as of the date they are made. We are
providing this information as of this date, and we do not undertake
to update the information included in this presentation, whether as
a result of new information, future events or otherwise.
--Financial Charts to Follow—
MICROFLUIDICS INTERNATIONAL
CORPORATION
Condensed Consolidated Balance
Sheets
(Unaudited - in thousands,
except share and per share amounts)
|
|
|
March 31,
2010
|
|
December 31,
2009
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,157
|
|
$
|
2,185
|
|
|
Accounts
receivable, net of allowance of $44 as of
March 31, 2010 and December 31, 2009
|
|
2,486
|
|
|
2,571
|
|
|
Inventories
|
|
2,714
|
|
|
2,916
|
|
|
Prepaid and other
current assets
|
|
359
|
|
|
280
|
|
|
Total current
assets
|
|
7,716
|
|
|
7,952
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
821
|
|
|
891
|
|
|
Other non-current
assets
|
|
489
|
|
|
535
|
|
|
Total
assets
|
$
|
9,026
|
|
$
|
9,378
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
822
|
|
$
|
545
|
|
|
Accrued
expenses
|
|
1,513
|
|
|
1,727
|
|
|
Customer
advances
|
|
531
|
|
|
1,137
|
|
|
Total current
liabilities
|
|
2,866
|
|
|
3,409
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
|
|
|
Convertible
debt
|
|
4,693
|
|
|
4,679
|
|
|
Total
liabilities
|
|
7,559
|
|
|
8,088
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock; $.01
par value; 30,000,000 and 30,000,000 shares authorized; 10,647,728
and 10,630,228 shares issued; 10,412,282 and 10,394,782 shares
outstanding as of March 31, 2010 and December 31, 2009,
respectively
|
|
106
|
|
|
106
|
|
|
Additional paid-in
capital
|
|
18,325
|
|
|
18,254
|
|
|
Accumulated
deficit
|
|
(16,295)
|
|
|
(16,401)
|
|
|
Treasury stock,
235,446 shares, at cost, as of March 31, 2010 and
December 31, 2009
|
|
(669)
|
|
|
(669)
|
|
|
Total
stockholders' equity
|
|
1,467
|
|
|
1,290
|
|
|
Total liabilities
and stockholders' equity
|
$
|
9,026
|
|
$
|
9,378
|
|
|
|
|
|
|
|
|
|
|
|
MICROFLUIDICS INTERNATIONAL
CORPORATION
Condensed Consolidated
Statements of Operations
(Unaudited - in thousands,
except share and per share amounts)
|
|
|
For The Three Months
Ended
March 31,
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
4,315
|
|
|
$
|
3,559
|
|
|
Cost of
sales
|
|
1,731
|
|
|
|
1,653
|
|
|
Gross
profit
|
|
2,584
|
|
|
|
1,906
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
451
|
|
|
|
452
|
|
|
Selling
|
|
1,041
|
|
|
|
1,216
|
|
|
General and
administrative
|
|
845
|
|
|
|
804
|
|
|
Total operating
expenses
|
|
2,337
|
|
|
|
2,472
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
247
|
|
|
|
(566)
|
|
|
Interest
expense
|
|
(141)
|
|
|
|
(126)
|
|
|
Interest
income
|
|
-
|
|
|
|
2
|
|
|
Income (loss)
before income tax provision
|
$
|
106
|
|
|
$
|
(690)
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
-
|
|
|
|
-
|
|
|
Net income
(loss)
|
$
|
106
|
|
|
$
|
(690)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.01
|
|
|
$
|
(0.07)
|
|
|
Diluted
|
$
|
0.01
|
|
|
$
|
(0.07)
|
|
|
Weighted average
number of common and common equivalent shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
10,400,615
|
|
|
|
10,370,628
|
|
|
Diluted
|
|
10,618,255
|
|
|
|
10,370,628
|
|
|
|
|
|
|
|
|
|
|
|
|
MICROFLUIDICS
INTERNATIONAL CORPORATION
U.S. GAAP to
Non-GAAP Measure Reconciliations and
Earnings Before
Interest, Taxes, Depreciation and Amortization
(EBITDA)
(Unaudited)
|
|
|
For The Three
Months Ended
March 31,
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
106
|
|
$
(690)
|
|
|
|
|
|
|
|
|
Net interest expense
(income)
|
141
|
|
125
|
|
Depreciation and
amortization
|
119
|
|
79
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP Measure)
|
366
|
|
(486)
|
|
|
|
|
|
|
|
|
Severance
|
|
|
-
|
|
400
|
|
Non-cash compensation
|
65
|
|
26
|
|
Adjusted EBITDA
|
|
$
431
|
|
$
(60)
|
|
|
|
|
|
|
|
SOURCE Microfluidics International Corporation