Microfluidics International Corporation (OTC Bulletin Board: MFLU), today reported unaudited financial results for the quarter ended June 30, 2009.
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(R) 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.