Microfluidics reports $143,000 net income for second-quarter 2010 vs. $177,000 loss in second-quarter 2009

Microfluidics International Corporation (OTC Bulletin Board: MFLU), today reported unaudited financial results for the second quarter ended June 30, 2010.

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.