Microbix Biosystems Inc. Reports Net Profit For 2013
TORONTO, December 30, 2013 -- Microbix Biosystems Inc. (TSX: MBX), an innovator of biological products and technologies, today reported financial results for its fourth quarter and fiscal year ending September 30, 2013. In the fourth quarter, Microbix reported revenue of $2,468,899 an increase of 31% compared to $1,884,801 for the same quarter in 2012. Full year revenues were $7,574,593, an increase of 14% compared to $6,669,789 in 2012. These higher revenues were primarily due to growing customer demand for Microbix’s biological products.
Total expenses for the fourth quarter were $634,939 compared to $973,587 for the same quarter in 2012 or a 35% reduction, due mainly to continued cost savings, reduced accretion on the Company’s convertible debentures and recognition of income tax credits. Total expenses for the year were $3,665,939, a reduction of 29% compared to $5,143,877 in 2012. These lower expenses resulted primarily from various cost savings initiatives conceived and implemented by Microbix management.
Net income for the fourth quarter was $635,747 compared to a net loss of $301,309 (Restated) for the same quarter last year. Net income before tax on a full year basis was $168,178, compared to a net loss of $2,389,066 in 2012. Cash flow from operations was positive for both the fourth quarter and fiscal year, with the Company improving its working capital position by $670,000 over the 12 months.
Vaughn C. Embro-Pantalony, President and Chief Executive Officer remarked, “I am very pleased to report our emerging into profitability in fiscal 2013. We have made very good progress in enhancing revenues and reducing costs, thereby achieving sustainable profitability. To see our bottom line improve by $2.5 million compared to last year is very gratifying for all of us at Microbix, and it positions our Company to be cost competitive and financially sound going forward.”
Microbix also reported today that Zydus Cadila, its license partner on the biopharmaceutical drug Kinlytic, has decided to terminate the license agreement for strategic reasons. Embro-Pantalony commented, “We are disappointed with Zydus’ decision - especially after both companies invested more than a year preparing a joint project plan that was ready for presentation to the FDA. However, we respect that Zydus’ priorities have changed and realize it is essential that our licensee is totally committed to the successful re-launch of Kinlytic in the U.S. market. We have initiated discussions with other parties interested in partnering Kinlytic.”
Embro-Pantalony concluded by noting that “Microbix is fortunate to have a growing and profitable biologicals business supplemented by not one, but several new technologies. Progress on the base business and the firm’s development stage technologies will be reported as goals are met through 2014.
About Microbix Biosystems
Microbix Biosystems Inc. specializes in the development of biological solutions, including products for vaccine and diagnostics markets worldwide. The company owns intellectual property for an approved biological drug, a vaccine technology and an animal reproduction technology. Established in 1988, Microbix is headquartered in Toronto, Microbix’ pipeline of innovative technologies and products includes LumiSort® semen sexing technology for the livestock industries, and Kinlytic®, a thrombolytic drug with several approved and potential applications including the treatment of life-threatening blood clots, and VIRUSMAX®, a proprietary technology for increasing virus yields in influenza vaccine manufacture.
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.
For further information:
Visit www.microbix.com or contact: Vaughn C. Embro-Pantalony, CEO, (905) 361-8910 x 350; or Charles Wallace, CFO, (905) 361-8910 x 255.
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