TORONTO, ONTARIO--(Marketwired - Feb. 16, 2016) - Microbix Biosystems Inc. (TSX:MBX) (the Company), an innovator of biological products and technologies, today reported financial results for its first quarter ending December 31, 2015.
First Quarter Financial Results
Microbix reported total revenue of $1,063,405 in the first quarter of fiscal 2016, a decrease of 47% from $1,995,833 in the first quarter of 2015. Virology product revenue was $1,009,316 in the first quarter compared to $1,876,431 for the same period last year.
Vaughn Embro-Pantalony, President and Chief Executive Officer stated, "While there was abnormal weakness in the first quarter, we expect strong performance over the rest of the year based on indicated customer demand, leading us to project record sales for the current fiscal year. Thus far, sales for the second quarter are in line with such full-year expectations." Mr. Embro-Pantalony continued, "Further to our sales outlook, I am very pleased to report the new bioreactor suite is being commissioned this month and will provide a much needed increase in our production capacity to service the growing demand for Microbix' viral antigens."
Operating expenses in the first quarter were $785,874 compared to $1,037,632 in the first quarter last year, primarily due to the conclusion of the VIRUSMAX litigation in the latter half of fiscal 2015 reducing legal expenses. The Company incurred a net loss of $338,420 in the first quarter, compared to net income of $1,940 in Q1 of last year.
Cash generated from operations was negative $31,698, in the first quarter compared to $195,206 positive in the same period for 2015, primarily due to the lower sales compared to the first quarter last year. Cash from financing activities was $670,735 in the first quarter compared to $1,208,497 in the same period last year, as credit utilization was $363,684 lower in the first quarter of this year compared to Q1 last year; also no warrants or stock options were exercised in the period this year, compared to $548,977 of warrants and $92,910 of stock options exercised last year; and finally net proceeds of $531,674 were received from a private placement in the first quarter this year, compared to no private placement in the same period last year. Cash used in investing activities was $676,785 in the first quarter compared to $1,160,306 in the same period last year, as development of the LumiSort prototype is now complete. As a final result, net cash flow was $37,748 negative in the first quarter, compared to $244,037 positive in the first quarter of last year.
Financial Highlights
| |
|
3 Months Ended Dec 31 |
| |
|
2015 |
|
|
2014 |
| Revenue |
$ |
1,063,405 |
|
|
1,995,833 |
| Net (loss) income |
$ |
(338,420 |
) |
|
1,940 |
| Net (loss) income per share |
$ |
(0.004 |
) |
|
0.000 |
| Cash Flow |
$ |
(37,748 |
) |
|
244,037 |
Corporate Update
Virology Products
Microbix' new bioreactor manufacturing process for Virology products is currently being converted from validation to production and this transition will be complete in February 2016. This state-of-the-art manufacturing platform will ultimately contribute significant cost savings and a needed production capacity expansion to respond to growing demand for antigens.
Mr. Embro-Pantalony added, "The commissioning of the bioreactor manufacturing suite is an important accomplishment for the Company. I want to take this opportunity to recognize the development, regulatory and management teams involved in this project for their successful delivery on schedule. Once the new process is fully operational in fiscal 2017, it will significantly strengthen the competitive position of our Virology products business. Overall, we expect to realize significant additional sales and profit contributions."
Kinlytic®
The Company reports that discussions continue with a group of stakeholders interested in working with the Company to re-launch Kinlytic in the U.S., Canada and international markets. Meaningful lead commitments have been made, subject to securing the balance of funding.
Mr. Embro-Pantalony commented, "Several potential investors, including Private Equity funds and high net worth investors, are currently evaluating the Kinlytic opportunity. Our primary objective is to secure a strong group of partners to develop and commercialize Kinlytic®, including investors willing to provide project-specific funding to return this thrombolytic drug to market."
LumiSort™
The Company also reports that negotiations are ongoing with companies interested in financing completion of the Microbix' transformative LumiSort™ technology.
Mr. Embro-Pantalony said, "There are many complexities to these negotiations, extending the timeline beyond our original expectations. We are making progress towards a conclusion that I believe will provide beneficial terms for Microbix and unlock the value of this asset for our shareholders."
About Microbix Biosystems
Microbix Biosystems Inc. specializes in the research and development of biological solutions. This includes products for human health applications in the vaccine, therapeutic and diagnostic markets and a product for the worldwide animal reproduction market. In its revenue generating business, the Company manufactures and distributes a wide range of infectious disease antigens to a worldwide customer base. The Company's pipeline of innovative technologies and products includes LumiSort semen sexing technology for the livestock industries, 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 the manufacture of influenza vaccine. Established in 1988, Microbix is a publicly traded company, listed on the Toronto Stock Exchange, and headquartered in Mississauga, Ontario.
Forward-Looking Information
This news release includes "forward-looking information," as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, the risks associated with its revenue business, development projects, operations in foreign jurisdictions, engineering and construction generally, production (including control over costs, quality, quantity and timeliness of delivery of products), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company's judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.
Please visit www.sedar.com for recent Microbix Biosystems Inc. filings.
For further information, please visit www.microbix.com.