TORONTO, Aug. 15, 2011 - Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing virology and novel biotechnologies, today reported financial results for the third quarter of fiscal 2011. For the quarter ended June 30, 2011, Microbix reported revenues of $1,515,911, a 28% increase from $1,184,761 for the same quarter in 2010. If not for the negative impact of currency adjustments, sales would have increased by 35% compared to the same quarter last year.
For nine months, sales decreased slightly to $4,090,510 from $4,242,486, a decline of 4% from the same period in 2010. This decline was primarily due to a one-time reduction in purchases by a large customer in the first quarter, as well as the continued strength of the Canadian dollar as Microbix records most of its sales in U.S. dollars and Euros.
Operating Expenses for the quarter were $1,472,982 compared to $1,877,538 for the same period in 2010 or a 22% reduction due to lower spending on the Hunan Joint Venture and the development of Urokinase. These results have contributed to a lower operating loss for the quarter of $745,151 compared to an operating loss of $1,251,955 for the same quarter last year. The lower spending activity also contributed to cash flow for the quarter of $46,197 compared to negative $676,131 for the same quarter last year. The net loss for nine months was $2,108,598 compared to a net loss of $2,568,162 in the previous year.
LumiSort®, Microbix’ novel technology for sexed semen, continues to make progress towards commercialization as the company broadened its strong intellectual property position. Microbix is in advanced discussions with manufacturing companies to build the instrument that the company expects to be the future of livestock artificial insemination.
William J. Gastle, Chief Executive Officer, said, “Strong growth in Virology product sales combined with effective control of our costs contributed over $700,000 to improved cash flow compared to last year. We also met with additional companies during the quarter who are evaluating licensing Urokinase given its track record as a safe, effective, and approved pharmaceutical. I am encouraged with our third quarter performance and I am very pleased by recent developments with LumiSort.”
Gastle added, “Our international management team is working to resolve the issues with Hunan Province. If this impasse persists, we are ready to initiate discussions with other provinces in China some of whom have expressed interest in the venture being located in their region.”
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.
