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| 8-K - CURRENT REPORT - Pharma-Bio Serv, Inc. | pbsv_8k.htm |
Exhibit
99.1
Pharma-Bio Serv Announces Results for the Year Ended
October 31, 2016
DORADO, PUERTO RICO / ACCESSWIRE / January 30, 2017 /
Pharma-Bio Serv, Inc. (Pharma-Bio Serv or the Company) (OTCQB:
PBSV), a compliance, project management and technology transfer
support consulting firm, that provides services to the
pharmaceutical, biotechnology, chemical, medical device, cosmetic,
food and allied products industries, today announced net revenues
for the year ended October 31, 2016 were $19.5 million, a decrease
of approximately $3.8 million, or 16%, when compared to last
year.
The
revenue decrease is mainly attributable to a decline of $2.9
million in the Puerto Rico consulting market, of which $1.3 million
is attributable to projects in Latin America which were managed
from Puerto Rico, plus $1.2 million and $0.3 million decrease in
the United States and Europe consulting markets, respectively,
partially offset by a gain in the Puerto Rico Lab and project
revenue from the Brazil consulting market of approximately $0.4
million and $0.2 million, respectively. Other Company divisions
sustained minor revenue gains/losses or remained
constant,
when compared to last year.
For the
year ended October 31, 2016, the Company reported a net loss of
approximately $0.3 million, a decrease in earnings of $1.9 million
when compared to the same period last year. The variance is mainly
attributable to the decline in revenue, continued investment on
business development and operational support expenses, recorded
other than temporary impairment on available for sale securities,
the recording of the early lease cancellation fee for our
Pennsylvania office facilities, and the effect of the effective
income tax rates (including Puerto Rico favorable tax grants) over
income before tax.
"Throughout
2016 we have continued our strategic re-alignment and investment in
resources and infrastructure designed to achieve profitability on
our non-performing operations, over the long term. We have focused
on consulting business development in existing and new markets,
expansion of our Puerto Rico Lab facilities, development of a new
Lab facility in Spain and enhancing our Calibrations division
facility in Puerto Rico," said Victor Sanchez, CEO of Pharma-Bio
Serv. “Our investment in our consulting team, new markets and
services, Lab facilities and equipment during fiscal year 2016
provides a stronger foundation upon which sustainable growth for
the Company can be realized in future years," he
added.
About Pharma-Bio Serv, Inc.
Pharma-Bio
Serv is a compliance, project management and technology transfer
support consulting firm, headquartered in Puerto Rico, with
operations in the U.S., Ireland and Spain. Pharma-Bio Serv's core
business is FDA and other international regulatory compliance
agency related services, with integrated portfolio services
including microbiological and chemical testing services for clients
in the Pharmaceutical, Biotechnology, Chemical, Medical Device,
Cosmetic, Food and Allied Products industries. The Company's
services also include "Pharma Serv Academy," a division that
provides technical and regulatory standards seminars/training
conducted by industry experts. The Company's global team includes
leading engineering and life science professionals, quality
assurance managers and directors.
Forward Looking Statements
This
news release contains "forward-looking statements" within the
meaning of the U.S. federal securities laws, which statements may
include information regarding the plans, intentions, expectations,
future financial performance, or future operating performance of
Pharma-Bio Serv. Forward-looking statements are based on the
expectations, estimates, or projections of management as of the
date of this news release. Although Pharma-Bio Serv's management
believes these expectations, estimates, or projections to be
reasonable as of the date of this news release, forward-looking
statements are inherently subject to significant business risks,
economic and competitive uncertainties, or other contingencies,
which could cause its actual results or performance to differ
materially from what may be expressed or implied in the
forward-looking statements. There can be no assurance that the
processes being undertaken by Pharma-Bio Serv will result in growth
through business development or mergers and acquisitions. Important
factors that could cause Pharma-Bio Serv's actual results or
performance to differ materially from the forward-looking
statements include those set forth in the "Risk Factors" section of
Pharma-Bio Serv's Annual Report on Form 10-K for the year ended
October 31, 2015, and in its other filings with the Securities and
Exchange Commission, which filings are available on www.sec.gov.
Pharma-Bio Serv disclaims any intention or obligation to update or
revise any forward-looking statements to reflect subsequent events
and circumstances, except to the extent required by applicable
law.
Investor
Relations Contact:
Scott
Gordon
President
CorProminence
LLC
scottg@corprominence.com
631 703
4900