Attached files
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| 8-K - Q4 YTD 2009 - MICROFLUIDICS INTERNATIONAL CORP | a8kearnings.htm |
Exhibit
99.1
MICROFLUIDICS
INTERNATIONAL CORPORATION ANNOUNCES FOURTH QUARTER AND YEAR-END 2009 FINANCIAL
RESULTS
Company
Reports Net Income for Second Straight Quarter
Conference
Call Today at 8:30 a.m.
Newton, MA, February 23, 2010 -
Microfluidics International Corporation (OTCBB: MFLU), today reported unaudited
financial results for the fourth quarter and year-ended December 31,
2009.
Fourth
quarter and recent accomplishments:
|
·
|
Earned
net income for the fourth quarter of
$80,000
|
|
·
|
Achieved
$525,000 in earnings before interest, taxes, depreciation and amortization
(EBITDA) for the year
|
|
·
|
Generated
$15.7 million in revenue for year-ended 2009, a 6% increase over
2008
|
|
·
|
Generated
$4.2 million in revenue for the fourth quarter, a 23% increase over the
same period in 2008
|
|
·
|
Reported
a $362,000 net loss for the year ended 2009, as compared to a
$4.0 million loss in
2008
|
|
·
|
Achieved gross
margin target of 60% for the year
|
|
·
|
Launched
Microfluidics Reaction Technology (MRT) and sold 2 beta units in the
fourth quarter
|
“In 2009,
despite unfavorable economic conditions, the Company met its most significant
goal since I took over as CEO in late 2007 – a positive EBITDA for the year,”
said Michael C. Ferrara, Chief Executive Officer of Microfluidics. “We achieved
this by introducing new products, improving quality and delivery, and
strengthening our sales coverage and marketing effectiveness. A positive EBITDA
is a significant accomplishment and an important indicator of the promise and
opportunity that exists with our business, especially in pharmaceuticals, moving
forward. In 2010, we intend to continue this momentum and drive additional
growth through the introduction of new products and services, an increased focus
on business outside of the United States and an ongoing commitment to excellence
across both quality and customer service.”
Peter F.
Byczko, Vice President of Finance and Chief Accounting Officer added, “Early in
2009 we took significant steps to control costs while continuing to invest in
programs that drive growth such as new product development. These
initiatives are yielding tangible results including improved profitability,
rising gross margins and overall increased shareholder value. We
would expect a sustained recovery in our principal markets to support product
line demand and contribute to our goal of achieving pre-tax profitability in
2010, a major step on the road to building a stronger company.”
Fourth
Quarter Financial Results:
Revenues
for the three months ended December 31, 2009 were $4.2 million, an increase of
$785,000 or 23%, as compared to revenues of $3.5 million for the three months
ended December 31, 2008. North American revenues were $2.7 million, an increase
of 5% as compared to $2.5 million in the fourth quarter of
2008. Foreign sales for the three months ended December 31, 2009 were
$1.6 million, an increase of 71% as compared to $934,000 for the fourth quarter
of 2008. Our gross margin was 62% in the fourth quarter of 2009 versus 49% for
the fourth quarter of 2008. Net income was $80,000, or $0.01 per
share, for the three months ended December 31, 2009 as compared to a net loss of
$1.7 million, or $0.17 per share, for the same period in 2008.
EBITDA
was $297,000 for the three months ended December 31, 2009 compared with a $1.4
million 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
End Financial Results:
Revenues
for the year ended December 31, 2009 were $15.7 million, an increase of
$800,000, or 6%, as compared to revenues of $14.9 million for the year ended
December 31, 2008. Net loss was $362,000, or $0.03 per share, for the year ended
December 31, 2009 as compared to $4.0 million net loss, or $0.39 per share, for
the same period in 2008. Gross margin for 2009 was 60% versus 51% in
2008.
EBITDA
was $525,000 for the year ended December 31, 2009 compared with a $3.5 million
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.”
Live
Webcast:
Microfluidics
International Corporation will host a webcast on Tuesday, February 23, 2010 at
8:30 a.m. Eastern Time. Participants are invited to attend the call by visiting
www.microfluidicscorp.com
or by dialing 866-804-6929 (within the United States) or 857-350-1675 (outside
the United States). The passcode for participants is 46248590.
A replay
will be available approximately two hours after the live call through March 2,
2010. 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
87532708. 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 our
new working capital line; our continued compliance with the representations,
warranties and covenants under our existing convertible debenture and working
capital line; our continued history of losses, which includes net losses in four
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 health care and those regulating the
exportation of goods; and general economic and business conditions, 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" in of our most recently filed Quarterly Report on Form
10-Q for the quarter ended September 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)
|
December 31,
|
December 31,
|
|||||||
|
2009
|
2008
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 2,185 | $ | 1,895 | ||||
|
Accounts
receivable, net of allowance of $44 at both December 31,
2009 and 2008
|
2,571 | 2,181 | ||||||
|
Inventories
|
2,916 | 2,723 | ||||||
|
Prepaid
and other current assets
|
280 | 320 | ||||||
|
Total
current assets
|
7,952 | 7,119 | ||||||
|
Property
and equipment, net
|
891 | 1,121 | ||||||
|
Other
non-current assets
|
535 | 480 | ||||||
|
Total
assets
|
$ | 9,378 | $ | 8,720 | ||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 545 | $ | 986 | ||||
|
Accrued
expenses
|
1,727 | 1,233 | ||||||
|
Customer
advances
|
1,137 | 436 | ||||||
|
Total
current liabilities
|
3,409 | 2,655 | ||||||
|
Long-term
liabilities:
|
||||||||
|
Convertible
debt
|
4,679 | 4,625 | ||||||
|
Total
liabilities
|
8,088 | 7,280 | ||||||
|
Stockholders’
equity:
|
||||||||
|
Common
stock; $.01 par value; 30,000,000 and 20,000,000 shares authorized;
10,630,228 and 10,592,228 shares issued; 10,394,782 and 10,356,782 shares
outstanding as of December 31, 2009 and 2008,
respectively
|
106 | 106 | ||||||
|
Additional
paid-in capital
|
18,254 | 18,042 | ||||||
|
Accumulated
deficit
|
(16,401 | ) | (16,039 | ) | ||||
|
Treasury
stock, 235,446 shares, at cost, as of December 31, 2009 and
2008
|
(669 | ) | (669 | ) | ||||
|
Total
stockholders’ equity
|
1,290 | 1,440 | ||||||
|
Total
liabilities and stockholders’ equity
|
$ | 9,378 | $ | 8,720 | ||||
MICROFLUIDICS
INTERNATIONAL CORPORATION
Condensed
Consolidated Statements of Operations
(Unaudited
- in thousands, except share and per share amounts)
|
Three
Months Ended
|
Twelve
Months Ended
|
||||||||||||
|
December 31,
|
December 31,
|
||||||||||||
|
2009
|
2008
|
2009
|
2008
|
||||||||||
|
Revenues
|
$
|
4,249
|
$
|
3,464
|
$
|
15,739
|
$
|
14,871
|
|||||
|
Cost
of sales
|
1,620
|
1,756
|
6,299
|
7,298
|
|||||||||
|
Gross
profit
|
2,629
|
1,708
|
9,440
|
7,573
|
|||||||||
|
Operating
expenses:
|
|||||||||||||
|
Research
and development
|
449
|
485
|
1,712
|
2,116
|
|||||||||
|
Selling
|
1,192
|
1,517
|
4,315
|
4,844
|
|||||||||
|
General
and administrative
|
799
|
1,321
|
3,290
|
4,495
|
|||||||||
|
Total
operating expenses
|
2,440
|
3,323
|
9,317
|
11,455
|
|||||||||
|
Income
(loss) from operations
|
189
|
(1,615
|
)
|
123
|
(3,882
|
)
|
|||||||
|
Interest
expense
|
(127
|
)
|
(104
|
)
|
(505
|
)
|
(154
|
)
|
|||||
|
Interest
income
|
—
|
4
|
2
|
25
|
|||||||||
|
Net
income (loss) before taxes
|
62
|
(1,715
|
)
|
(380
|
)
|
(4,011)
|
|||||||
|
Income
tax benefit
|
(18)
|
—
|
(18)
|
—
|
|||||||||
|
Net
income (loss)
|
$
|
80
|
$
|
(1,715
|
)
|
$
|
(362
|
)
|
$
|
(4,011
|
)
|
||
|
Net
income (loss) per common share:
|
|||||||||||||
|
Basic
|
$
|
0.01
|
$
|
(0.17
|
)
|
$
|
(0.03
|
)
|
$
|
(0.39
|
)
|
||
|
Diluted
|
$
|
0.01
|
$
|
(0.17
|
)
|
$
|
(0.03
|
)
|
$
|
(0.39
|
)
|
||
|
Weighted
average number of common and
common
equivalent shares outstanding:
|
|||||||||||||
|
Basic
|
10,389,782
|
10,349,282
|
10,380,157
|
10,296,296
|
|||||||||
|
Diluted
|
10,605,371
|
10,349,282
|
10,380,157
|
10,296,296
|
|||||||||
|
MICROFLUIDICS
INTERNATIONAL CORPORATION
|
||||||||||||||||
|
U.S.
GAAP to Non-GAAP Measure Reconciliations
|
||||||||||||||||
|
Earnings
Before Interest, Taxes, Depreciation and Amortization
(EBITDA)
|
||||||||||||||||
|
(Unaudited
- in thousands)
|
||||||||||||||||
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
income (loss)
|
$ | 80 | $ | (1,715 | ) | $ | (362 | ) | $ | (4,011 | ) | |||||
|
Net
interest expense
|
127 | 100 | 503 | 129 | ||||||||||||
|
Depreciation
and amortization
|
108 | 229 | 402 | 403 | ||||||||||||
|
Income
tax benefit
|
(18 | ) | - | (18 | ) | - | ||||||||||
|
EBITDA
(Non-GAAP Measure)
|
297 | (1,386 | ) | 525 | (3,479 | ) | ||||||||||
|
Severance
|
- | 181 | 415 | 345 | ||||||||||||
|
Non-cash
compensation
|
56 | 62 | 200 | 233 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 353 | $ | (1,143 | ) | $ | 1,140 | $ | (2,901 | ) | ||||||