Message #21 From:
NewsBot Date: August 11, 2006 02:30:00 PM
MFIC News MFIC Posts 24% Second Quarter Revenue Increase Achieving Record Quarterly Sales
NEWTON, Mass.--(BUSINESS WIRE)--Aug. 11, 2006--MFIC Corporation (OTCBB: MFIC) today reported revenues for the quarter ended June 30, 2006 of $3.91 million, representing an increase of $746,000, or 23.6%, compared with revenues of $3.16 million for the quarter ended June 30, 2005.
For the quarter ended June 30, 2006, the Company posted net income of approximately $128,000, or $.01 per share, as compared with a net loss of approximately $36,000, or $0.00 per share, for the quarter ended June 30, 2005. The second quarter 2006 included an income tax provision of $86,000 while the second quarter of 2005 had no income tax benefit or provision.
For the six month period ended June 30, 2006 revenues increased $1.36 million, or 23.9%, to approximately $7.06 million, and the Company reported a net profit of $0.02 per share, as compared with $5.7 million in revenues, and a net loss of $0.02 per share, for the first six months of 2005.
The Company's order backlog at June 30, 2006 was $3.43 million as compared with a $3.45 million backlog at March 31, 2006. The current backlog represents an increase of approximately 35% from $2.54 million as of June 30, 2005.
Robert P. Bruno, President & COO stated "I am very pleased with the record level of sales for Microfluidics equipment during this past quarter along with a very healthy and steady backlog. Measured against the comparable quarter in 2005, lab scale units and pilot and production unit sales have grown 19% and 43% respectively. For the first six months of 2006, growth of the same categories of products has been 53% and 17% respectively compared to last year. Our new Constant Pressure M700 production machines and our newly introduced M110EH-30 lab scale machines have been well received by all of the major industries we serve and sales of both have exceeded our expectations."
Irwin Gruverman, Chairman & CEO commented "During the second quarter we continued to experience a high level of demand for our advanced materials processing equipment across our targeted industry markets, particularly in the biopharmaceutical market. We believe that the current quarter's revenue growth and profitability, combined with the backlog are evidence of the benefit of our R&D reinvestment program in 2004 and 2005, which program continues. Based on current trends and performance in orders, including a backlog which rose to more than $3.95 million as of the date of this release, sales quotations, inquiry rates and negotiations with prospective customers past the year's midpoint, we are confident of revenue growth for 2006. We continue the high level of investment in R&D and our efforts to remain the leader in high pressure, high shear fluid processing."
-- Shipped six M-110EH-30 lab machines, introduced in late 2005, that operate at 30,000 psi process pressure.
-- Shipped a high number of laboratory units in the quarter, providing a solid foundation for future sales of scale-up equipment.
-- Experienced significant growth in sales of pilot and production units.
Notice to Investors/Stockholders
MFIC will hold a conference call at 1:30 PM Eastern Time on Monday, August 14, 2006 to discuss second quarter and six months financial results. The domestic call in number is (877) 691 0873 and the Conference I.D. number is 7733953. Management's discussion will be followed by a question and answer period. For those who cannot listen to the live event, a replay of the call will be available on the Company's website: www.mficcorp.com.
MFIC Corporation, through its Microfluidics subsidiary, provides patented and proprietary high performance Microfluidizer(R) materials processing equipment to the biotechnology, pharmaceutical, chemical, cosmetics/personal care, and food industries. 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 nanoparticle products 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.
MFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months Six months
ended ended
June 30, June 30,
(In thousands, except per share data) 2006 2005 2006 2005
Revenues $3,910 $3,164 $7,061 $5,700
Cost of goods sold 1,801 1,607 3,248 2,756
------- ------- ------- -------
Gross profit 2,109 1,557 3,813 2,944
Operating expenses:
Research and development 453 385 850 806
Selling 741 658 1,357 1,272
General and administrative 701 536 1,323 1,074
------- ------- ------- -------
Total operating expenses 1,895 1,579 3,530 3,152
Income (loss) from operations 214 (22 ) 283 (208 )
Interest expense (10 ) (17 ) (20 ) (32 )
Interest income 10 3 20 11
------- ------- ------- -------
Income (loss) before income tax
provision (benefit) 214 (36 ) 283 (229 )
Income tax provision (benefit) 86 -- 113 (77 )
------- ------- ------- --------
Net income (loss) $ 128 $(36 ) $170 $(152 )
=============== ===============
Weighted average number of common and
common equivalent shares
outstanding:
Basic 9,974 9,709 9,963 9,693
Diluted 10,990 9,709 11,038 9,693
Net income (loss) per common share:
Basic $0.01 $(0.00 ) $0.02 $(0.02 )
Diluted $0.01 $(0.00 ) $0.02 $(0.02 )
Summary Consolidated Unaudited Balance Sheet Information
(In thousands, except per share data)
June December
30, 31,
2006 2005
----------------------------------------------------------------------
Current Assets $6,232 $5,734
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Current Liabilities $1,741 $1,461
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Total Stockholders' Equity $4,703 $4,426
----------------------------------------------------------------------
Equity Per Share $0.43 $0.45
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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(R) materials processing equipment 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 revenues and resulting net income for particular quarters in a manner that could 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.
