Company Reports Net Income, Strong Demand by Vaccine Developers and
Manufacturers NEWTON, Mass., Nov. 2 /PRNewswire-FirstCall/ --
Microfluidics International Corporation (OTC:MFLU) (BULLETIN BOARD:
MFLU) , today reported unaudited financial results for the third
quarter ended September 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090811/NE59652LOGO ) Third
quarter accomplishments: -- Earned net income for the third quarter
of $425,000 -- Achieved $650,000 in earnings before interest,
taxes, depreciation and amortization (EBITDA) -- Delivered strong
bookings in the third quarter of $4.8 million and a backlog of
$4.75 million as of September 30, 2009 -- Generated $4.5 million in
revenue for the third quarter, a 27% increase over the same period
in 2008 "I am pleased to report that the strategic plan we
implemented a year ago has led us to our first profitable quarter
since my joining the Company," said Michael C. Ferrara, Chief
Executive Officer of Microfluidics. "We will continue to innovate
with new products, increase international representative and
distributor coverage, streamline costs and improve quality in
support of our customers as we strive to carry this positive
momentum through the second half of the year and into 2010." "The
initiatives and strong cost controls implemented in the first half
of the year are yielding tangible results," said Peter Byczko, Vice
President of Finance and Chief Accounting Officer. "Demand in our
product line remains strong, especially within our core
biopharmaceutical markets and customers are exhibiting increased
interest in value-added services as they realize the importance of
maximizing machine uptime and availability. We are pleased with our
results and will continue to work to improve the financial position
of the Company." Third Quarter Financial Results: Revenues for the
three months ended September 30, 2009 were $4.5 million, an
increase of $1.0 million, or 27%, as compared to revenues of $3.5
million for the three months ended September 30, 2008. North
American revenues were $3.2 million, an increase of 63% as compared
to $2.0 million in the third quarter of 2008. The increase in North
America was offset by a 19% decrease in foreign sales from $1.5
million for the third quarter of 2008 to $1.3 million for the third
quarter of 2009. Our gross margin increased to 66% in the third
quarter of 2009. This increase is attributable to pricing actions
taking effect and appropriately adjusting our pricing to cover
additional services requested by our customers. Net income was
$425,000, or $0.04 per diluted share, for the three months ended
September 30, 2009 as compared to a net loss of $1.1 million, or
$0.10 per diluted share, for the same period in 2008. EBITDA was
$650,000 for the three months ended September 30, 2009 compared
with a $930,000 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 nine months ended September 30, 2009 were
$11.5 million, an increase of $83,000, or 1%, as compared to
revenues of $11.4 million for the nine months ended September 30,
2008. Net loss was $442,000, or $0.04 per diluted share, for the
nine months ended September 30, 2009 as compared to $2.3 million
net loss, or $0.22 per diluted share, for the same period in 2008.
EBITDA was $230,000 for the nine months ended September 30, 2009
compared with $2.1 million EBITDA loss for the same period in 2008.
Live Webcast: Microfluidics International Corporation will host a
webcast on Monday, November 2, 2009 at 4:30 p.m. Eastern Time.
Participants are invited to attend the call by visiting
http://www.microfluidicscorp.com/ or by dialing 866-356-4281
(within the United States) or 617-597-5395 (outside the United
States). The passcode for participants is 96732749. A replay will
be available approximately two hours after the live call through
November 9, 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 69691770. 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, 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; 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 June 30, 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)
September 30, December 31, 2009 2008 ---- ---- ASSETS Current
assets: Cash and cash equivalents $1,694 $1,895 Accounts
receivable, net of allowance of $44 at both September 30, 2009 and
December 31, 2008 2,582 2,181 Inventories 2,802 2,723 Prepaid and
other current assets 338 320 --- --- Total current assets 7,416
7,119 Property and equipment, net 954 1,121 Other non-current
assets 447 480 --- --- Total assets $8,817 $8,720 ====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $820 $986 Accrued expenses 1,140 1,233 Customer advances
1,039 436 ----- --- Total current liabilities 2,999 2,655 Long-term
liabilities Convertible debt 4,666 4,625 ----- ----- Total
liabilities 7,665 7,280 ----- ----- Stockholders' equity: Common
stock; $.01 par value; 30,000,000 and 20,000,000 shares authorized;
10,622,728 and 10,592,228 shares issued; 10,387,282 and 10,356,782
shares outstanding as of September 30, 2009 and December 31, 2008,
respectively. 106 106 Additional paid-in capital 18,196 18,042
Accumulated deficit (16,481) (16,039) Treasury stock, 235,446
shares, at cost, as of September 30, 2009 and December 31, 2008
(669) (669) ---- ---- Total stockholders' equity 1,152 1,440 -----
----- Total liabilities and stockholders' equity $8,817 $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 Nine Months Ended September 30, September 30, 2009 2008 2009
2008 Revenues $4,462 $3,511 $11,490 $11,407 Cost of sales 1,533
1,708 4,679 5,542 Gross profit 2,929 1,803 6,811 5,865 Operating
expenses: Research and development 418 569 1,263 1,631 Selling 995
1,199 3,123 3,327 General and administrative 965 1,057 2,491 3,174
Total operating expenses 2,378 2,825 6,877 8,132 Income (loss) from
operations 551 (1,022) (66) (2,267) Interest expense (126) (39)
(378) (50) Interest income - - 2 21 Net Income (loss) $425 $(1,061)
$(442) $(2,296) Net loss per common share: Basic $0.04 $(0.10)
$(0.04) $(0.22) Diluted $0.04 $(0.10) $(0.04) $(0.22) Weighted
average number of common and common equivalent shares outstanding:
Basic 10,387,282 10,299,938 10,376,949 10,278,633 Diluted
10,474,532 10,299,938 10,376,949 10,278,633 For The Three Months
For The Nine Months Ended September 30, Ended September 30,
--------------------- --------------------- 2009 2008 2009 2008
---- ---- ---- ---- Net income (loss) $425 $(1,061) $(442) $(2,297)
Net interest expense (income) 126 39 378 29 Depreciation and
amortization 96 91 291 174 -- -- --- --- EBITDA (Non-GAAP Measure)
647 (931) 227 (2,094) Severance - - 415 164 Non-cash compensation
56 63 144 171 -- -- --- --- Adjusted EBITDA $703 $(868) $786
$(1,759) ==== ===== ==== ======= Weighted average number of common
and common equivalent shares outstanding: Basic: 10,387,282
10,299,938 10,376,949 10,278,633 Diluted: 10,474,532 10,299,938
10,376,949 10,278,633 EBITDA per common share (Non-GAAP Measure):
Basic: $0.04 $(0.10) $(0.04) $(0.22) Diluted: $0.04 $(0.10) $(0.04)
$(0.22) http://www.newscom.com/cgi-bin/prnh/20090811/NE59652LOGO
http://photoarchive.ap.org/ DATASOURCE: Microfluidics International
Corporation CONTACT: Peter Byczko, Microfluidics International
Corporation, +1-617-969-5452 ext. 243 Web Site:
http://www.microfluidicscorp.com/
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