SOURCE: Pharma-Bio Serv Inc.

Pharma-Bio Serv Inc.

March 17, 2014 16:15 ET

Pharma-Bio Serv Announces Results for the Quarter Ended January 31, 2014

DORADO, PUERTO RICO--(Marketwired - Mar 17, 2014) - Pharma-Bio Serv. (OTCQB: PBSV), a compliance, project management and technology transfer support consulting firm, announced today net revenues for the three months ended January 31, 2014 of $7.0 million, a decrease of approximately $0.6 million, or 8%, when compared to the same period in 2013. This decrease is mainly attributable to a decline in revenues from projects of $0.4 and $0.2 million in the United States and Europe consulting markets, respectively. The Company continues investing in its global business development and operations in order to diversify its market and customer base.

Selling, general and administrative expenses for the three months ended January 31, 2014 were approximately $1.5 million, a net increase in expenses of approximately $0.2 million as compared to the same period in 2013 reflecting the additional business and operations investments.

Net income for the three months ended January 31, 2014 was approximately $0.7 million, a decrease of $0.4 million when compared with the same period in 2013. The net income variance, when compared to the same period in 2013, is mainly attributable to the revenue decline, the increase in selling general and administrative expenses for the business and operations investments incurred aimed to diversify markets and customer base, and the effect of the effective income tax rates (including Puerto Rico favorable tax grants) over income before tax.

"We continue to establish the foundation for our continued strategic growth by investing in our global operations which we believe will enhance future shareholder value," said Elizabeth Plaza, Chairman of the Board of Directors.

About Pharma-Bio Serv Inc.

Pharma-Bio Serv is a compliance, project management and technology transfer support consulting firm, headquartered in Puerto Rico, with operations in the U.S., Ireland and Spain. Pharma-Bio Serv's core business is FDA and international agencies regulatory compliance related services with integrated portfolio services including microbiological and chemical testing services for clients in the Pharmaceutical, Biotechnology, Chemical, Medical Device, Cosmetic, Food and Allied Products industries, at its laboratory testing facility in Puerto Rico. Services also include "Integratek," an information technology consulting practice, and "Pharma Serv Academy" a division that provides technical and regulatory standards seminars/training conducted by industry experts. The Company's global team includes more than 300 leading engineering and life science professionals, quality assurance managers and directors.

Forward Looking Statements

This news release and the presentation contain "forward-looking statements" within the meaning of the U.S. federal securities laws, which statements may include information regarding the plans, intentions, expectations, future financial performance, or future operating performance of Pharma-Bio Serv. Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release. Although Pharma-Bio Serv's management believes these expectations, estimates, or projections to be reasonable as of the date of this news release, forward-looking statements are inherently subject to significant business risks, economic and competitive uncertainties, or other contingencies, which could cause its actual results or performance to differ materially from what may be expressed or implied in the forward-looking statements. Important factors that could cause Pharma-Bio Serv's actual results or performance to differ materially from the forward-looking statements include those set forth in the "Risk Factors" section of Pharma-Bio Serv's Annual Report on Form 10-K for the year ended October 31, 2013 and in its other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov. Pharma-Bio Serv disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.

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