« Previous | Next » | All Messages |  MFIC Message Board Home | recommend post |  Ignore Poster

MFIC News MFIC Corporation Comments on Preliminary Revenues for the First Quarter of 2007

NEWTON, Mass.--(BUSINESS WIRE)--MFIC Corporation (“MFIC” or the “Company”)(OTCBB: MFIC) announced today that it anticipates that revenues for the first quarter of 2007 will be significantly lower than the $3.2 million revenues posted in the first quarter of 2006. As a result of the lower first quarter 2007 revenues, the Company anticipates reporting a loss for the period. Delays in shipping of two production Microfluidizer processor systems, valued in the aggregate at approximately $644,000, is the primary reason for the lower revenue result. Final testing of one system in the last week of the quarter encountered a technical difficulty which could not be resolved quickly; the second delay was caused by issues regarding scheduling of the final testing process before the quarter’s end. Both production units are anticipated to be booked as revenue in the second quarter of 2007.

As stated in prior filings and releases, capital goods manufacturers, such as MFIC, often experience uneven sequential quarterly revenues, and the December 31, 2006 and March 31, 2007 quarterly results are an example of this. Revenue recognition is dependent on a customer’s acceptance of the equipment’s performance. Delays in customer acceptance can significantly impact the amount of revenue recognized in a specific accounting period.

Order backlog as of March 31, 2007 was $2.9 million as compared to $3.5 million as of March 31, 2006 and $3.0 million as of December 31, 2006. Management remains optimistic regarding financial performance in 2007.

As previously announced, MFIC will hold an investor conference call beginning at 1:00 PM Eastern time on April 2, 2007. The domestic call in number is (800)370 0898 and the Conference I.D. number is 8634648. For those who cannot listen and participate in the live event, it is anticipated that a replay of the call will be available on the Company's website: www.mficcorp.com later this week.

FORWARD LOOKING STATEMENT:

Management believes that this release contains forward-looking statements that are subject to certain risks and uncertainties including statements relating to the Company’s plan to attain and/or increase operating profitability and/or to achieve net profitability. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties that could cause actual results achieved by the Company to differ materially from those described in the forward-looking statements. The Company cautions investors that there can be no assurance that the actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including but not limited to the following risks and uncertainties: (i) whether the performance advantages of the Company’s Microfluidizer® materials processing equipment will be realized commercially or that a commercial market for the equipment will continue to develop, (ii) whether the performance advantages of the Company’s MMR nanoparticle production systems will be realized commercially, (iii) whether the Company will be able to increase its market penetration and market share, (iv) whether the timing of orders will significantly affect quarterly revenues and resulting net income results for particular quarters which may cause increased volatility in the Company’s stock price, and (v) whether the Company will have access to sufficient working capital through continued and improving cash flow from sales, and ongoing borrowing availability, the latter being subject to the Company’s ability to comply with the covenants and terms of its loan agreement with its senior lender.

About MFIC CORPORATION

MFIC Corporation, through its Microfluidics Division, provides patented and proprietary high performance Microfluidizer® materials processing equipment to the biotechnology, pharmaceutical, chemical, cosmetics/personal care, and food industries. The equipment enables the manufacture and formulation of numerous nanomaterials and nanoscale products. MFIC applies its 20 years of high pressure processing experience to produce the most uniform and smallest liquid and suspended solid structures available, and has provided manufacturing systems for more than 15 years.

The Company 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 MFIC equipment customers. For more information please visit http://www.microfluidicscorp.com/