Message #26 From:
NewsBot Date: November 8, 2006 01:55:00 PM
MFIC News MFIC Posts Greater Than 23% Increase for Both Third Quarter & Nine Month Revenues
NEWTON, Mass.--(BUSINESS WIRE)--MFIC Corporation (OTCBB: MFIC) today reported revenues for the quarter
ended September 30, 2006 of $3.55 million, representing an increase of
approximately $670,000, or 23.3%, compared with revenues of $2.88
million for the quarter ended September 30, 2005.
For the quarter ended September 30, 2006, the Company posted net income
of approximately $85,000, or $.01 per diluted share, as compared with a
net loss of approximately $297,000, or $0.03 per diluted share, for the
quarter ended September 30, 2005. The third quarter 2006 included an
income tax provision of $57,000 while the third quarter of 2005 had no
income tax benefit or provision.
For the nine month period ended September 30, 2006, revenues increased
$2,033,000, or 23.7%, to approximately $10.6 million, and the Company
reported a net profit of $0.02 per diluted share, as compared with
approximately $8.6 million in revenues, and a net loss of $0.05 per
diluted share, for the first nine months of 2005.
The Company’s order backlog at September 30,
2006, was $4.94 million as compared with a $3.43 million backlog at June
30, 2006. The current backlog represents an increase of approximately
$1.42 million from approximately $3.52 million as of September 30, 2005.
Robert P. Bruno, President & COO stated, “I
am very pleased to announce that our third quarter machine orders
increased by 124% versus the same period last year. In the year to date,
machine orders have increased by 61% versus the same period last year.
One of the many highlights of the past quarter and for the year is the
continuing strong sales for our M110EH laboratory machine. The number of
M110EH machines shipped during the third quarter increased by 200%
compared to the same period last year and shipments of this product,
year to date, have nearly doubled compared to the same period last year.
Also, the number of M700 series pilot and production machines shipped
during the quarter increased by 50% compared to the number of machines
shipped during the same period last year and increased by 27%, year to
date, compared to the same period last year.”
Irwin Gruverman, Chairman & CEO commented, “We
continued to experience a strong demand for our Microfluidizer®
materials processing equipment during the third quarter. We believe that
the current quarter’s performance and the nine
months revenue and profitability, combined with the backlog, are
testimony to the effectiveness of our R&D reinvestment program in 2004
and 2005. Based on the backlog and expected shipments, we anticipate
continued revenue growth in the fourth quarter versus the prior year’s
fourth quarter. We are committed to retaining our leadership in high
pressure, high shear fluid processing and will continue the high level
of investment in R&D and our efforts to ensure our future position in
the industry.”
Shipped a high level of laboratory systems, including M110EH-30 lab
machines
Booked more that $2.2 million in orders for large production equipment
and production equipment interaction chambers.
Notice to Investors/Stockholders
MFIC will hold a conference call at 1:30 PM Eastern Time on Thursday,
November 9, 2006 to discuss third quarter and nine months financial
results. The domestic call in number is (800) 370 0898 and the
Conference I.D. number is 8087245. 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®
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.
(Unaudited - in thousands, except per share amounts)
For The Three Months Ended
September 30,
For The Nine Months Ended
September 30,
2006
2005
2006
2005
Revenues
$
3,553
$
2,881
$
10,614
$
8,581
Cost of sales
1,558
1,527
4,806
4,283
Gross profit
1,995
1,354
5,808
4,298
Operating expenses:
Research and development
424
414
1,274
1,220
Selling
723
599
2,081
1,871
General and administrative
707
632
2,030
1,706
1,854
1,645
5,385
4,797
Income (loss) from operations
141
(291)
423
(499)
Interest expense
(9)
(13)
(29)
(45)
Interest income
10
7
31
18
Income (loss) before income tax provision (benefit)
142
(297)
425
(526)
Income tax provision (benefit)
57
-
170
(77)
Net income (loss)
$
85
$
(297)
$
255
$
(449)
Net income (loss) per common share:
Basic
$
0.01
$
(0.03)
$
0.03
$
(0.05)
Diluted
$
0.01
$
(0.03)
$
0.02
$
(0.05)
Weighted average number of common and common equivalent shares
outstanding:
Basic
10,045
9,784
9,990
9,724
Diluted
10,561
9,784
10,517
9,724
Summary Consolidated Unaudited Balance Sheet Information
(Unaudited - in thousands, except per share data)
September 30,
2006
December 31,
2005
Current Assets
$7,004
$5,734
Current Liabilities
$2,387
$1,461
Total Stockholders’ Equity
$4,880
$4,426
Equity Per Share
$ 0.46
$ 0.45
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 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.
