Microbix Reports First Quarter Results

One-time adjustment moves sales temporarily lower; strategic initiatives boost cash flow position

TORONTO, Feb. 14 /CNW/ - Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing novel technologies for influenza vaccine manufacturing and livestock semen sexing, in addition to a core business of virology products, today reported financial results for the first quarter of fiscal 2011. For the quarter ended December 31, 2010, Microbix reported revenues of $812,694, a 34% decrease from $1,226,538 for the same period in 2009. 

The decline was primarily due to the timing of customer orders and, in particular, a one-time unplanned production adjustment by one large customer.  This long-term relationship will be returning to a regular delivery schedule during the next 9 months. The negative impact of the strong Canadian dollar also impacted earnings for Microbix, which records most of its sales in U.S. dollars and Euros.

Operating Expenses declined nearly 20% compared to last year reflecting reduced spending on the pipeline projects as they transition to stand-alone status.  The Net Operating Loss for the quarter was $734,360 compared to a Loss of $740,031 for the same period last year. Cash Flow for the quarter was $176,801 compared to negative $467,388 for the same period last year.  This improvement was the result of increased cash from operations, as well as a successful equity financing late in the quarter.

Microbix CEO, William J. Gastle, said: "The effects of a reduced burn rate on our three pipeline technologies is beginning to show in our results, as our focus shifts from pure product development activities, to the creation of operating partnerships designed to produce revenue streams for LumiSort™,  the Hunan joint venture in China, and Urokinase."

In December Microbix announced it had formed Crucible International Biotechnologies Corp., which is being capitalized through an initial private offering of at least $2,800,000.  Following this financing Microbix will own approximately 80% of Crucible, which will own all of the influenza vaccine assets of Microbix, including its VIRUSMAX™ technology and the company's 50% ownership interest in the Hunan joint venture. Microbix also announced a new partnership agreement on Lumisort, its proprietary semen sexing technology, in late fiscal 2010. Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.

Financial Highlights

        Quarter Ended December 31
        2010   2009
             
Revenue     $      812,694     1,226,538
             
Net Income (loss)     $    (734,360)      (740,031)
             
Net Income (loss) per share     $          (0.01)            (0.01)
             
Cash Flow     $      176,801      (467,388)

About Microbix Biosystems

Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. Microbix, in partner with the Hunan government in China, is building Asia's largest and most advanced vaccine facility. In addition, The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Microbix supplies customers in the U.S., Europe, and Asia. Established in 1988, Microbix is headquartered in Toronto.

Disclaimer

This press release contains forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including the risks associated with development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all.  These forward-looking statements represent the Companies' judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

SOURCE Microbix Biosystems Inc.

For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

Profil de l'entreprise

Microbix Biosystems Inc.

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