SOURCE: Pharma-Bio Serv Inc.

Pharma-Bio Serv Inc.

September 15, 2014 16:39 ET

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

DORADO, PR--(Marketwired - Sep 15, 2014) - Pharma-Bio Serv. (OTCQB: PBSV), a compliance, project management and technology transfer support consulting firm, announced today net revenues for the three and nine months ended July 31, 2014 were $6.8 and $20.4 million, respectively, a decrease of approximately $1.5 and $3.9 million, or 18.3% and 15.9%, respectively, when compared to the same periods last year. This decrease is mainly attributable to a decline in revenues from projects in the United States, Europe and Puerto Rico consulting markets and the Lab for $0.9, $0.4, $0.1 and $0.2 million, respectively, for the three-month period ended July 31, 2014, and $2.2, $0.9, $0.4 and $0.3 million, respectively, for the nine-month period ended July 31, 2014. Other Company divisions sustained minor revenue gains/losses or remained constant, when compared to the same period last year.

Selling, general and administrative expenses for the three and nine months ended July 31, 2014 were approximately $1.5 and $4.7 million, respectively. Expenses when compared with the same period last year, remained constant for the three-month period ended July 31, 2014 and had a net increase of approximately $0.6 million for the nine-month period ended July 31, 2014. In the current fiscal year, the Company continued investing in its business development and operations support expenses for all its divisions in order to diversify their market, services and customer base.

Net income for three and nine months ended July 31, 2014 was approximately $0.6 and $1.6 million, a decrease of $0.6 and $2.1 million, respectively, when compared with the same periods last year. The net income variance, when compared to the same periods last year, is mainly attributable to the decline in revenue, the increase in selling general and administrative expenses for the business and operations investments incurred aimed to diversify markets, services and customer base, and the effect of the effective income tax rates (including Puerto Rico favorable tax grants) over income before tax.

"Our plans remain in place as we continue investing in our business development and operations in order to diversify our markets, services and customer base," said Ms. Elizabeth Plaza, Principal Executive Officer of Pharma-Bio Serv.

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 245 leading engineering and life science professionals, quality assurance managers and directors.

Forward Looking Statements

This news release contains "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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