Company reports positive EBITDA for the Second Quarter 2009 NEWTON,
Mass., Aug. 11 /PRNewswire-FirstCall/ -- Microfluidics
International Corporation (OTC:MFLU) (BULLETIN BOARD: MFLU) , today
reported unaudited financial results for the quarter ended June 30,
2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090811/NE59652LOGO ) Second
quarter accomplishments: -- Achieved positive earnings before
interest, taxes, depreciation and amortization (EBITDA) of $48,000
-- Delivered strong bookings of $6.6 million with a backlog of $4.3
million at the end of the quarter primarily due to increased demand
by vaccine developers -- Entered into an R&D agreement and
equipment sales order for the Company's proprietary Microfluidics
Reaction Technology (MRT) with a major pharmaceutical customer --
Entered into an exclusive distributorship agreement with
Japanese-based POWREX to market, sell and service Microfluidizer
high shear fluid processors in the pharmaceutical, biotechnology
and energy industries throughout Japan -- Formed a strategic
alliance with U.S.-based Particle Sciences to help
biopharmaceutical companies leverage the most advanced and reliable
nanotechnology and formulation methods available to develop,
analyze and commercialize Active Pharmaceutical Ingredients (APIs)
"I believe that the generation of positive EBITDA in the midst of
an extremely challenging global economy speaks to the strength of
demand for our products and process consulting services as well as
to the Company's long-term potential," said Michael C. Ferrara,
President and Chief Executive Officer of Microfluidics. "Achieving
positive EBITDA in the second quarter is an important step towards
sustainable growth, generating working capital and achieving future
profitability. We will continue to innovate with new products,
improve international representatives and distributor coverage,
streamline costs and improve quality in support of our valued
customers as we strive to carry our momentum through the second
half of 2009 and into next year." "In direct support of our
profitability goals, Microfluidics has strategically invested in
necessary infrastructure while aggressively managing manufacturing
and operating costs and quality to improve efficiency and reduce
execution risk," said Peter Byczko, Vice President of Finance and
Chief Accounting Officer. "We will monitor our cost structure on an
ongoing basis while also preparing the Company for future growth
with the introduction of three new products in the fourth quarter
of 2009 and the first quarter of 2010." Second Quarter Financial
Results: Revenues for the three months ended June 30, 2009 were
$3.5 million, a decline of $900,000, or 21%, as compared to
revenues of $4.4 million for the three months ended June 30, 2008.
North American revenues increased 8% to $1.5 million, offset by a
35% decrease in foreign sales from $2.9 million to $1.9 million.
The second quarter of 2008 had an abnormally high number of
production machines sold in Europe to the pharmaceutical industry.
Net loss, as measured under U.S. generally accepted accounting
principles ("GAAP"), was $177,000, or $0.02 per diluted share, for
the three months ended June 30, 2009 as compared to $790,000 net
loss, or $0.08 per diluted share, for the same period in 2008.
EBITDA income was $48,000 for the three months ended June 30, 2009
compared with $756,000 EBITDA loss for the same period in 2008.
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." Year to Date Financial
Results: Revenues for the six months ended June 30, 2009 were $7.0
million, a decrease of $900,000, or 11%, as compared to revenues of
$7.9 million for the six months ended June 30, 2008. Net loss, as
measured under U.S. generally accepted accounting principles
("GAAP"), was $867,000, or $0.08 per diluted share, for the six
months ended June 30, 2009 as compared to $1.2 million net loss, or
$0.12 per diluted share, for the same period in 2008. EBITDA loss
was $420,000 for the six months ended June 30, 2009 compared with
$1.2 million EBITDA loss for the same period in 2008. Live Webcast:
Microfluidics International Corporation will host a webcast on
Tuesday, August 11, 2009 at 8:30 a.m. Eastern Time. Participants
are invited to attend the call by visiting http://www.mficcorp.com/
and clicking on the webcast link in the Investors, Events section
or by dialing 866-314-4483 (within the United States) or
617-213-8049 (outside the United States). The passcode for
participants is 61872202. A replay will be available approximately
two hours after the live call through August 18, 2009. 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 95302005. 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. More than 3,000 systems are in use and afford
significant competitive and economic advantages to the Company's
equipment customers. 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. 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; our continued history of losses, which
includes net losses in three 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 those regulating the exportation of goods; and general
economic and business conditions and the financial crisis,
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" of our most recently filed Quarterly Report on Form
10-Q for the quarter ended March 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
press release, 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) June
30, December 31, 2009 2008 ---- ---- ASSETS Current assets: Cash
and cash equivalents $402 $1,895 Accounts receivable, net of
allowance of $44 both at June 30, 2009 and December 31, 2008,
respectively 2,788 2,181 Inventories 2,843 2,723 Prepaid and other
current assets 285 320 --- --- Total current assets 6,318 7,119
Property and equipment, net 1,034 1,121 Other non-current assets
464 480 --- --- Total assets $7,816 $8,720 ====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $1,151 $986 Accrued expenses 938 1,233 Customer advances
409 436 --- --- Total current liabilities 2,498 2,655 Long-term
liabilities: Convertible debt 4,652 4,625 ----- ----- Total
liabilities 7,150 7,280 ----- ----- Stockholders' equity: Common
stock; $.01 par value; 30,000,000 and 20,000,000 shares authorized;
10,607,228 and 10,592,228 shares issued; 10,371,782 and 10,356,782
shares outstanding as of June 30, 2009 and December 31, 2008,
respectively 106 106 Additional paid-in capital 18,135 18,042
Accumulated deficit (16,906) (16,039) Treasury stock, 235,446
shares, at cost, as of June 30, 2009 and December 31, 2008 (669)
(669) ---- ---- Total stockholders' equity 666 1,440 --- -----
Total liabilities and stockholders' equity $7,816 $8,720 ======
====== 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, -------- -------- 2009 2008
2009 2008 ---- ---- ---- ---- Revenues $3,469 $4,374 $7,028 $7,896
Cost of sales 1,493 2,225 3,146 3,834 ----- ----- ----- ----- Gross
profit 1,976 2,149 3,882 4,062 ----- ----- ----- ----- Operating
expenses: Research and development 393 572 845 1,062 Selling 913
1,196 2,129 2,128 General and administrative 722 1,175 1,526 2,118
--- ----- ----- ----- Total operating expenses 2,028 2,943 4,500
5,308 ----- ----- ----- ----- Loss from operations (52) (794) (618)
(1,246) Interest expense (126) (6) (252) (10) Interest income 1 10
3 21 - -- - -- Net loss $(177) $(790) $(867) $(1,235) ===== =====
===== ======= Net loss per common share: Basic $(0.02) $(0.08)
$(0.08) $(0.12) Diluted $(0.02) $(0.08) $(0.08) $(0.12) Weighted
average number of common and common equivalent shares outstanding:
Basic 10,371,782 10,267,981 10,371,205 10,267,981 Diluted
10,371,782 10,267,981 10,371,205 10,267,981 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) (unaudited) For The Three Months For The Six Months Ended
June 30, Ended June 30, ----------------- ----------------- 2009
2008 2009 2008 ---- ---- ---- ---- Net loss $(177) $(790) $(867)
$(1,235) Net interest expense (income) 126 (6) 252 (10)
Depreciation and amortization 99 40 195 81 -- -- --- -- EBITDA
(Non-GAAP Measure) $48 $(756) $(420) $(1,164) === ===== =====
======= Weighted average number of common and common equivalent
shares outstanding: Basic: 10,371,782 10,267,981 10,371,205
10,267,981 Diluted: 10,371,782 10,267,981 10,371,205 10,267,981
EBITDA per common share (Non-GAAP Measure): Basic: $0.00 $(0.07)
$(0.04) $(0.11) Diluted: $0.00 $(0.07) $(0.04) $(0.11)
http://www.newscom.com/cgi-bin/prnh/20090811/NE59652LOGO
DATASOURCE: Microfluidics International Corporation CONTACT: Sarah
Cavanaugh of MacDougall Biomedical Communications for Microfluidics
International Corporation, (O) +1-781-235-3060, (C)
+1-508-864-8337, Web Site: http://www.mficcorp.com/
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