Microbix Biosystems Inc.
TSX : MBX

Microbix Biosystems Inc.

February 13, 2015 08:30 ET

Microbix Reports Virology Revenue Up 8% in First Quarter

Company Files Several New LumiSort™ Patent Applications

TORONTO, ONTARIO--(Marketwired - Feb. 13, 2015) - Microbix Biosystems Inc. (TSX:MBX), an innovator of biological products and technologies, today reported financial results for its first quarter ending December 31, 2014.

First Quarter Financial Results

Microbix reported total revenue of $1,995,833 in the first quarter of fiscal 2015 compared to $1,927,885 in the first quarter of 2014, or an increase of 4%. Virology products revenue was $1,876,431 or an increase of 8% compared to $1,739,516 in the first quarter of last year. This improvement was mainly attributable to the weaker Canadian dollar year over year. Operating income in the first quarter was $90,553 compared to an operating income of $214,406 in the first quarter of 2014. The lower operating income is the result of increased operating expenses to support the pipeline projects during the quarter.

Cash generated from operations was $195,206 positive in the first quarter compared to $91,454 negative in the same period last year, primarily due to lower accounts receivable compared to the first quarter last year. Cash from financing activities was $1,208,497 in the first quarter compared to $126,528 last year, due to the exercising of warrants and stock options of $641,887, as well as the receipt of the net proceeds of a new equipment loan of $613,684. Cash used in investing activities was $1,160,306 in the first quarter compared to $86,397 in the same period last year, primarily due to development of the LumiSort prototype instrument. As a result, net cash flow was $244,037 positive in the first quarter compared to $51,773 negative in the first quarter of last year.

Vaughn Embro-Pantalony, Chief Executive Officer commented, "I am pleased with our solid first quarter performance. We continue to generate top line growth in our Virology products business, which has contributed to an operating profit for the quarter. It also helped to generate positive net cash flow in conjunction with the proceeds from the exercising of shareholder warrants during the quarter. This is especially important as we continue to invest heavily in our pipeline activities, which will ultimately drive shareholder value."

Financial Highlights

3 Months Ended Dec 31
2014 2013
Revenue $ 1,995,833 1,927,885
Operating income before income taxes $ 90,553 214,406
Net income $ 1,940 116,161
Net income per share $ 0.000 0.002
Cash Flow $ 244,037 (51,773 )

Significant Expansion of LumiSort™ Patent Portfolio

Microbix also announces that it is filing many additional patent applications on its LumiSort™ technology. The LumiSort platform will introduce transformative advantages in speed, yield and fertility to semen sexing that will provide livestock producers in the dairy and beef industries with significant benefits in reproductive efficiency by decreasing costs and improving productivity. Not only will the LumiSort platform produce sexed semen more quickly and with less damage than conventional sexed semen, but also the yields are expected to be three times higher, resulting in value-added throughout the production chain.

Vaughn Embro-Pantalony commented, "We have introduced several innovative elements in this first phase of development of our LumiSort technology platform. In addition to having a functional prototype that demonstrates the key features of our LumiSort technology, we are significantly expanding our patent portfolio beyond our three existing LumiSort technology patent families. We are also exploring a collaborative arrangement for the next phase of development of the LumiSort technology platform."

Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings and financial information.

About Microbix Biosystems

Microbix Biosystems Inc. specializes in the research and development of biological solutions, including products for human health applications, namely in the vaccine, therapeutic and diagnostic markets, as well as animal reproductive markets worldwide. 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.

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 Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

%SEDAR: 00004220E

Contact Information

  • Microbix Biosystems Inc.
    Vaughn C. Embro-Pantalony
    CEO
    (905) 361-8910 x 350

    Microbix Biosystems Inc.
    Charles Wallace
    CFO
    (905) 361-8910 x 255
    www.microbix.com