TORONTO, May 16, 2011 -- Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing virology and novel biotechnologies, today reported financial results for the second quarter of fiscal 2011. For the quarter ended March 31, 2011, Microbix reported revenues of $1,761,905, a 4% decrease from $1,831,186 for the same period in 2010, however on a currency-adjusted basis sales volume grew by 3% compared to the same quarter last year when record sales were recorded.
For six months, sales decreased to $2,574,599 from $3,057,724, a decline of 16% over the same period in 2010. Lower sales were primarily due to a one-time reduction in purchases by a large customer in the first quarter, as well as the strong Canadian dollar as Microbix records most of its sales in U.S. dollars and Euros.
Operating Expenses were 6% higher due to start-up costs related to the Hunan Joint Venture. These results have contributed to the higher Operating Loss for the quarter which was $629,086 compared to an Operating Loss of $576,177 for the same period last year. Cash Flow for the quarter was negative $44,749 compared to positive $653,930 for the same period last year. This difference was the result of reduced cash from operations, as well as a smaller equity financing late in the quarter. The Net Loss for 6 months was $1,363,447 compared to a Net Loss of $1,316,207 in the previous year.
The Company was recently informed by Hunan Province of certain fundamental changes they want to make to the terms and conditions of the originally signed Joint Venture Agreement. In Microbix’ opinion this would significantly raise the risk on the project for shareholders. Microbix and Crucible management are working to bridge the gap with Hunan, and discussions are ongoing with the Government of Hunan Province and China’s Central Government. Earlier in the year Microbix announced it had formed Crucible International Biotechnologies Corp. which is responsible for all activities relating to the Hunan joint venture in China.
Microbix CEO, William J. Gastle, said: “Virology product volume increased again this quarter as we continue expanding our diagnostic product offering. We have additional companies evaluating licensing Urokinase because of increased interest in effective, safe, and approved pharmaceuticals. LumiSort has made significant progress towards commercialization as the new intellectual property is broadened and the invention is being reduced to practice in the next few months. As a major shareholder I am pleased with the Company’s Second Quarter performance and I am very excited about recent developments with LumiSort. We are working to resolve the issues with Hunan as soon as possible.”
Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.
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 planning to build 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.
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.
