Microbix Reports Increased Sales for 2010

New Customers and Increased Demand for Virology Products Fuel 15% Growth in Shipments in 2010

TORONTO, Dec. 22 /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 fourth quarter and full year 2010. For the fiscal year ended September 30, 2010, Microbix reported revenues of $ 6,463,235 million, a 6% increase over the same period in 2009. For fourth quarter 2010, revenues increased to $2,220,750 million, over revenues of $ 1,514, 306 in the same quarter last year. Both quarterly and annual figures represent strong financial performance in a down economy. However, timing of customer demand during the year is difficult to predict from quarter to quarter.

Sales increases in virology products, critical for the diagnostic, research and pharmaceutical industries, were primarily due to new product offerings, and greater demand from existing customers to support growing businesses. The company's Watline biologics production facility, which opened in April of 2009, filled higher order volumes. Revenues would have been higher still if not for the negative impact of the strong Canadian dollar compared to last year.

Microbix CEO, William J. Gastle, said: "We are pleased to report increased sales for 2010 against the backdrop of the strong Canadian dollar".  He added, "Having two of our three pipeline technologies, VIRUSMAX/Crucible and LumiSortTM, becoming self financing moves us closer to the goal of having Microbix become cash flow positive." 

In 2010, two of the company's accomplishments stand out in positioning the company for future growth and continued financial success:

  • In July, Microbix signed two partnership agreements that will finance LumiSort's development. LumiSort is Microbix' proprietary technology that will enable livestock breeders to pre-determine the sex of their herd prior to conception. The agreements: First, with one of the largest suppliers of livestock reproduction products and services in the world; and second, with a global engineering firm and recognized leader in the cytometry industry, will accelerate the development and commercialization of LumiSort. LumiSort is expected to be introduced to the worldwide livestock market in early 2012.
  • Earlier this month, Microbix announced it had formed and capitalized Crucible International Biotechnologies Corp., a wholly owned subsidiary, which now operates as a stand-alone business reducing the company's operating costs and limiting its burn rate. Microbix transferred all of its influenza vaccine assets into Crucible, including its VIRUSMAX™ technology and the company's 50% ownership interest in the Hunan joint venture. Microbix also completed the private placement financing of Crucible, which was over-subscribed, to provide start-up capital for the joint venture in China. The establishment of Crucible, now valued at$14 million, and the successful start-up financing is a major milestone for the Hunan joint venture and for Microbix and its shareholders. 

Other Financial Highlights

For the year ended September 30, 2010, Microbix recorded a net loss of $2,548,349 or 5 cents a share similar to the loss of $2,484,536, or 5 cents a share in fiscal 2009.

The fourth quarter turned a profit of $ 29,712, compared with a loss $715,667, or 1 cent per share in 2009. Cash flow improved but was still negative for the quarter; however year-over-year the burn rate declined by 60% for the quarter, and by 80% for the full year.

           Quarter ended            Year ended
           September 30          September 30
  2010     2009   2010   2009
               
Revenue 2,220,750     1,514,306   6,463,235   6,082,469
             
Net Income (loss) 29,714     (715,667)   (2,538,449)   (2,484,536)
               
Net Income (loss) per share 0     (0.01)   (0.05)   (0.05)
               
Cash flow (82,248)     (185,750)   (571,837)   (2,819,188)

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 partnership with the Hunan government in China, is building Asia's largest and most advanced vaccine facility. In addition, The Company has intellectual property in a large market biotherapeutic drug, a vaccine technology and an animal reproduction technology. 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: 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.

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