Home > Press > Microfluidics International Corporation Announces Second Quarter 2008 Results
Abstract:
Microfluidics International Corporation, (OTCBB: MFIC), an industry-leader in high-shear liquid processing equipment to produce the most uniform and smallest liquid and solid particles available for the biotech, pharmaceutical, chemical, personal care and food industries, today reported financial results for the second quarter of 2008.
Second Quarter Highlights
-- Recorded highest second quarter revenue in the Company's history of $4.4 million
-- Addressed working capital needs with signing of $2.5 million multi-year revolving credit line
-- Completed executive leadership team with the appointment of a new Executive Vice President and Chief Financial Officer, Chief Technology Officer, and Vice President of Customer Success
-- Finalized three year strategic plan focused on double-digit top line organic global growth
-- Changed name to Microfluidics International Corporation to enhance global branding
For the quarter ended June 30, 2008 the Company reported revenues of $4.4 million, an increase of 23.0% from $3.6 million in the second quarter of 2007 and a negative EBITDA of $(754,000) or $(0.07) per share for the second quarter of 2008 as compared to a negative EBITDA of $(82,000) or $(0.01) per share for the same period in 2007.
Net loss for the second quarter 2008 was $(790,000) or $(0.08) per share as compared to a net loss of $(107,000) or $(0.01) per share for the second quarter ended June 30, 2007.
The Company's order backlog as of June 30, 2008 was $2.7 million compared to backlog of $2.9 million as of June 30, 2007. The decrease in backlog was primarily a result of North American order timing delays of large production machines.
"Our focus on revenue growth, properly building the Company's infrastructure, and rounding out our leadership team remained our top priority this quarter," said Michael C. Ferrara, President and Chief Executive Officer. "We are not pleased with the EBITDA results for the quarter. However, we are in the process of addressing this issue on several fronts and we will align the operating expenses as required on our path to profitability. Strong performance with our large pharmaceutical customers, combined with our initial success in globally expanding our distribution resources are our plans to deliver top line results that will support our growth initiatives."
Brian E. LeClair, Executive Vice President and Chief Financial Officer, added, "Our EBITDA for the second quarter was below our expectations. The loss in the quarter was driven by a decline in our gross margins and an increase in operating expenses. The decline in margins was associated with sales of our lab units which were introduced in the previous quarter at lower margins and higher sales of the custom production machines. We have put corrective plans in place to address the margin decline that should bring our margins back in line with historical levels. Results were also adversely affected by an increase in operating expenses associated with building our leadership team and making investments in our future growth."
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About Microfluidics International Corporation
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, -------------------------- ------------------------- 2008 2007 2008 2007 ------------- ------------ ------------ ------------ Revenues $ 4,374 $ 3,557 $ 7,896 $ 6,358 Cost of goods sold 2,225 1,453 3,834 2,646 ------------- ------------ ------------ ------------ Gross profit 2,149 2,104 4,062 3,712 ------------- ------------ ------------ ------------ Operating expenses: Research and development 572 438 1,062 974 Selling 1,196 984 2,128 1,808 General and administrative 1,175 805 2,118 1,483 ------------- ------------ ------------ ------------ Total operating expenses 2,943 2,227 5,308 4,265 ------------- ------------ ------------ ------------ Loss from operations (794) (123) (1,246) (553) Interest expense (6) (1) (10) (9) Interest income 10 17 21 38 ------------- ------------ ------------ ------------ Net loss $ (790) $ (107) $ (1,235) $ (524) ============= ============ ============ ============ Net loss per common share: Basic $ (0.08) $ (0.01) $ (0.12) $ (0.05) Diluted $ (0.08) $ (0.01) $ (0.12) $ (0.05) Weighted average number of common and common equivalent shares outstanding: Basic 10,267,981 10,180,413 10,267,981 10,151,749 Diluted 10,267,981 10,180,413 10,267,981 10,151,749 -0- MICROFLUIDICS INTERNATIONAL CORPORATION Condensed Consolidated Balance Sheets (Unaudited - in thousands, except share and per share amounts) June 30, December 31, 2008 2007 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 1,162 $ 756 Accounts receivable, net of allowance of $41 both at June 30, 2008 and December 31, 2007, respectively 2,250 2,582 Inventories 2,638 2,353 Prepaid and other current assets 688 281 ------------ ------------ Total current assets 6,738 5,972 Property and equipment, net 849 325 Patents and licenses, net 58 60 ------------ ------------ Total assets $ 7,645 $ 6,357 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Revolving credit line $ 1,012 $ 262 Current maturities of long-term debt and obligations under capital lease - 65 Accounts payable 1,449 129 Accrued expenses 1,069 725 Customer advances 464 409 ------------ ------------ Total current liabilities 3,994 1,590 ------------ ------------ Total liabilities 3,994 1,590 ------------ ------------ Stockholders' equity: Common stock; $.01 par value; 20,000,000 shares authorized; 10,528,427 and 10,517,178 shares issued; 10,267,981 and 10,256,732 shares outstanding as of June 30, 2008 and December 31, 2007, respectively. 105 105 Additional paid-in capital 17,497 17,378 Accumulated deficit (13,263) (12,028) Treasury stock, 260,446 shares, at cost, as of June 30, 2008 and December 31, 2007 (688) (688) ------------ ------------ Total stockholders' equity 3,651 4,767 ------------ ------------ Total liabilities and stockholders' equity $ 7,645 $ 6,357 ============ ============ -0- 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) Quarter Ended Six Months Ended June 30, June 30, ------------------------- ------------------------- 2008 2007 2008 2007 ------------------------- ------------------------- Net loss $ (790) $ (107) $ (1,235) $ (524) Net interest income (4) (16) (10) (29) Depreciation and amortization 40 41 81 83 ------------------------- ------------------------- EBITDA (Non-GAAP Measure) $ (754) $ (82) $ (1,164) $ (470) ------------------------- ------------------------- Weighted average number of common and common equivalent shares outstanding: Basic: 10,267,981 10,180,413 10,267,981 10,151,749 Diluted: 10,267,981 10,180,413 10,267,981 10,151,749 EBITDA per common share (Non-GAAP Measure): Basic: $ (0.07) $ (0.01) $ (0.11) $ (0.05) Diluted: $ (0.07) $ (0.01) $ (0.11) $ (0.05)
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Contacts:
Microfluidics International Corporation
Brian E. LeClair
617-969-5452
or
FD Ashton Partners
Michael Cummings
617-897-1532
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