August 16, 2011

Microbix 2011 third quarter revenues increase 28%

Microbix Biosystems Inc. reported a 28% increase in their third-quarter revenues in the fiscal year of 2011, compared to the same quarter the previous year.

The biotechnology company reported US$1,515,911 in revenues for the quarter ended June 30, 2011, compared to US$1,184,761 for the same period in 2010.

However, Microbix reported that had currency adjustments not had a negative impact, sales would have increased by 35% compared to the same quarter last year.

Sales decreased by 4% for nine months compared to the same period last year, from US$4,242,486 to US$4,090,510, 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.  Microbix records most of its sales in US dollars and Euros.

Operating Expenses for the quarter were US$1,472,982 compared to US$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 US$745,151 compared to an operating loss of US$1,251,955 for the same quarter last year.

Chief executive officer William J. Gastle said, "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."

The lower spending activity also contributed to cash flow for the quarter of US$46,197, compared to a loss of US$676,131 for the same quarter last year.  The net loss for nine months was US$2,108,598 compared to a net loss of US$2,568,162 in the previous year.

Microbix is in advanced discussions with manufacturing companies to produce LumiSort^®, Microbix's technology for sexed semen.