NEWTON, Mass., Aug. 10 /PRNewswire-FirstCall/ -- Microfluidics
International Corporation (OTC Bulletin Board: MFLU), today
reported unaudited financial results for the second quarter ended
June 30, 2010.
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Second Quarter and Recent Accomplishments:
- Generated $4.5 million in revenue
for the second quarter, a 30% increase over the same period in
2009
- Generated net income for the second quarter of $143,000 or $0.01
per share, compared to a loss of $177,000, or $0.02
per share, in the second quarter of 2009
- Achieved $396,000 in earnings
before interest, taxes, depreciation and amortization (EBITDA)
- Achieved 64% gross margin
- Began to shipped the LV1 low volume Microfluidizer® in the
quarter
"The second quarter of 2010 marks
the fourth 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. "In addition, we
currently have more new products available than ever before in the
history of the Company. I'm pleased with the second quarter and
first half of 2010."
"We are extremely pleased to announce another positive quarter
leading to an excellent first half of the year," said Peter Byczko, Vice President of Finance and
Chief Accounting Officer. "Our financial results reflect demand for
our technology which enabled the company to achieve better
operating margins. We have improved our working capital
efficiency over last year creating positive cash flow and
strengthening our balance sheet."
Second Quarter Financial Results:
Revenues for the three months ended June 30, 2010 were
$4.5 million, an increase of
$1.0 million, or 30%, as compared to
revenues of $3.5 million for the
three months ended June 30, 2009. North American revenues were
$2.4 million, an increase of 58%, as
compared to $1.5 million in the
second quarter of 2009. Foreign revenues were $2.1 million, an increase of $148,000, or 7.7%, from $1.9 million for the second quarter of 2009. The
increase in revenues is principally attributable to an increase in
the sale of lab machines and spare parts. Our gross margin
increased to 64% in the second quarter of 2010. Net income was
$143,000, or $0.01 per diluted share, for the three months
ended June 30, 2010 as compared to a net loss of $177,000, or $0.02
per diluted share, for the same period in 2009.
EBITDA was $396,000 for the three
months ended June 30, 2010 compared
with a $48,000 EBITDA for the same
period in 2009. EBITDA is not a financial measure calculated
in accordance with generally accepted accounting principles (GAAP).
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."
Year to Date Financial Results:
Revenues for the six months ended June
30, 2010 were $8.8 million, an
increase of $1.8 million, or 26%, as
compared to revenues of $7.0 million
for the six months ended June 30,
2009. Net income was $249,000,
or $0.02 per diluted share, for the
six months ended June 30, 2010 as
compared to an $867,000 net loss, or
$0.08 per diluted share, for the same
period in 2009.
EBITDA was $762,000 for the
six months ended June 30, 2010
compared with a $420,000 negative EBITDA for the same period
in 2009.
Live Webcast:
Microfluidics International Corporation will host a webcast on
Tuesday, August 10, 2010 at 8:30 a.m. Eastern Time.
Participants are invited to attend the call by visiting
www.microfluidicscorp.com or by dialing 866-730-5767 (within
the United States) or 857-350-1591
(outside the United States). The
pass code for participants is 17982013.
A replay will be available approximately two hours after the
live call through August 18, 2010. To
access the replay, dial 888-286-8010 (within the United States) or 617-801-6888 (outside
the United States). The pass code
for participants is 45623626. 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,
nutraceutical/food, energy and academics. 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 nanoparticle and other materials processing and
production.
Non-GAAP Financial Measures:
In addition to the results reported in accordance with 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 from our revolving line of credit; our continued
compliance with the representations, warranties and covenants under
our existing convertible debenture and revolving line of credit;
our 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 members of our management team ; risks related to the
biotechnology and pharmaceutical industries due to the substantial
portion of our income derived from these industries, including
health care regulation, industry consolidation, uncertainty in
technology changes and patent expirations, and reductions and
delays in expenditures in research and development, 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
Statements of Operations
(Unaudited - in thousands,
except share and per share amounts)
|
|
|
|
For The Three Months Ended
|
|
For The Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
4,512
|
|
$
|
3,469
|
|
$
|
8,827
|
|
$
|
7,028
|
|
|
Cost of sales
|
|
1,627
|
|
1,493
|
|
3,358
|
|
3,146
|
|
|
Gross profit
|
|
2,885
|
|
1,976
|
|
5,469
|
|
3,882
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
509
|
|
410
|
|
976
|
|
868
|
|
|
Selling
|
|
1,076
|
|
926
|
|
2,131
|
|
2,147
|
|
|
General and
administrative
|
|
979
|
|
676
|
|
1,749
|
|
1,455
|
|
|
Total operating
expenses
|
|
2,564
|
|
2,012
|
|
4,856
|
|
4,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
321
|
|
(36)
|
|
613
|
|
(588)
|
|
|
Interest expense
|
|
(178)
|
|
(142)
|
|
(364)
|
|
(282)
|
|
|
Interest income
|
|
-----
|
|
1
|
|
-----
|
|
3
|
|
|
Net income (loss)
|
|
$
|
143
|
|
$
|
(177)
|
|
$
|
249
|
|
$
|
(867)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.01
|
|
$
|
(0.02)
|
|
$
|
0.02
|
|
$
|
(0.08)
|
|
|
Diluted
|
|
$
|
0.01
|
|
$
|
(0.02)
|
|
$
|
0.02
|
|
$
|
(0.08)
|
|
|
Weighted average number of
common and common equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
10,413,615
|
|
10,371,782
|
|
10,407,115
|
|
10,371,205
|
|
|
Diluted
|
|
10,612,677
|
|
10,371,782
|
|
10,615,769
|
|
10,371,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MICROFLUIDICS INTERNATIONAL
CORPORATION
Condensed Consolidated Balance
Sheets
(Unaudited - in thousands,
except share and per share amounts)
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,949
|
|
$
|
2,185
|
|
|
Accounts receivable, net of
allowance of $38 and $44 on June 30, 2010 and
December 31, 2009,
respectively
|
|
2,957
|
|
2,571
|
|
|
Inventories
|
|
2,683
|
|
2,916
|
|
|
Prepaid and other current
assets
|
|
334
|
|
280
|
|
|
Total current assets
|
|
7,923
|
|
7,952
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
757
|
|
891
|
|
|
Other non-current
assets
|
|
442
|
|
535
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
9,122
|
|
$
|
9,378
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
828
|
|
$
|
545
|
|
|
Accrued expenses
|
|
1,474
|
|
1,727
|
|
|
Customer advances
|
|
459
|
|
1,137
|
|
|
Total current
liabilities
|
|
2,761
|
|
3,409
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
Convertible
debt
|
|
4,707
|
|
4,679
|
|
|
Total liabilities
|
|
7,468
|
|
8,088
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock; $.01 par value;
30,000,000 and $30,000,000 shares authorized;
10,649,728 and 10,630,228 shares
issued; 10,414,282 and 10,394,782 shares
outstanding as of June 30, 2010
and December 31, 2009, respectively
|
|
106
|
|
106
|
|
|
Additional paid-in
capital
|
|
18,369
|
|
18,254
|
|
|
Accumulated deficit
|
|
(16,152)
|
|
(16,401)
|
|
|
Treasury stock, 235,446 shares,
at cost, as of June 30, 2010 and December 31, 2009
|
|
(669)
|
|
(669)
|
|
|
Total stockholders'
equity
|
|
|
1,654
|
|
|
1,290
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
9,122
|
|
$
|
9,378
|
|
|
|
|
|
|
|
|
|
|
|
|
MICROFLUIDICS INTERNATIONAL
CORPORATION
U.S. GAAP To Non-GAAP Measure
Reconciliations and
Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA)
(In
thousands, except share and per share
amounts)
|
|
|
|
For the Three
Months Ended
|
|
For the
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
Description
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
143
|
|
$
|
(177)
|
|
$
|
249
|
|
$
|
(867)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
178
|
|
142
|
|
364
|
|
282
|
|
|
Depreciation and
amortization
|
|
75
|
|
83
|
|
149
|
|
165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (Non-GAAP
Measure)
|
|
$
|
396
|
|
$
|
48
|
|
$
|
762
|
|
$
|
(420)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Microfluidics International Corporation
Copyright . 10 PR Newswire