MFIC went over a dollar today for the first time in about 9 months... on rel heavy vol it finished at 1.07 up .16. If you put it up on a chart going back that long you'll see today's activity as pretty impressive...and a breakout of sorts. breakouts have to be confirmed so let's see what the next few days bring but given the company's 1st qtr performance (below), their increasing business with drug and biochem companies and a solid forecast for the rest of the year the stock looks cheap here in my opinion and maybe just as important the downside risk seems nominal.
MFIC Corporation Announces First Quarter 2001 Results
NEWTON, Mass.--(BUSINESS WIRE)--May 1, 2001--(OTCBB : MFIC - news)--MFIC Corporation (``MFIC'') reported today consolidated revenues of $4,449,624 and net income of $497,055, or $.07 per diluted share for the quarter ended March 31, 2001. This compares to revenues of $3,732,919 and net income of $245,906, or $.04 per diluted share (after an extraordinary gain of $.03) for the corresponding period in 2000.
The backlog of orders as of March 31, 2001 was approximately $3,252,000. This compares with a backlog of approximately $2,648,000 as of March 31, 2000.
Robert P. Bruno, COO, stated ``Our sales performance for the first quarter of 2001 showed growth of more than $716,000, or a 19% improvement, from the corresponding quarter in 2000 and set a historical revenue record for a first quarter. During the first quarter of 2001 we achieved a substantial increase in profitability over the comparable period last year. Our income, exclusive of charges for depreciation and amortization, was approximately $670,000 as compared with $248,000 for the first quarter of 2000.''
Irwin Gruverman, CEO and Chairman, stated ``The Company's net income in the first quarter is the highest quarterly net profit since the August 1998 acquisition of Morehouse-COWLES and Epworth Manufacturing. With the posting of these strong results, a large backlog, ongoing robust order flow, and vigorous inquiry and quotation activity, we believe that we are attaining our strategic goal to become the provider of one of the broadest ranges of materials processing solutions and equipment. Our integration of all sales/marketing activity for all the operating divisions' products into a corporate sales group is taking hold. Our objective is to continue to post both revenue growth and to maintain profitability in the intermediate and longer term. Our recently announced sale of substantially all the assets of our Epworth Mill Division and sublease of most of that division's South Haven, Michigan facility have enabled us to reduce our outstanding debt while relieving us of operating overhead. This should help improve our cash flow and contribute to improved operating results. We believe that we are positioned to continue our expansion and profitability. Through our improved financial arrangements resulting from the establishment of a credit facility with National Bank of Canada in February 2000, strength in cash flow and our operating profitability, we can take steps to more aggressively market our equipment lines and the full complement of processing solutions.''
Management believes that this release may contain forward-looking statements that are subject to certain risks and uncertainties including statements relating to the Company's plan to maintain revenue growth and net profitability. Actual results achieved by the Company could differ materially from the Company's estimates and projections, depending on a number of factors including the following risks and uncertainties: the Company's ability to grow revenues and to maintain net profitabili0ty, the Company's ongoing ability to manage the integration of the Epworth Mill and Morehouse-COWLES divisions into its operations, uncertainty that the performance advantages of the Company's equipment will be realized commercially or that a commercial market for the equipment will continue to develop, the dependence by the Company upon key customers, the development of competing or superior technologies and products from other manufacturers, the cyclical nature of the materials processing industry and general market and economic conditions.
MFIC CORPORATION
Statement of Operations
(unaudited)
Three Months Ended Three Months Ended
March 31, 2001 March 31, 2000
Revenues $ 4,449,624 $ 3,732,919
Cost of goods sold 2,222,538 1,981,050
Gross profit on revenues 2,227,086 1,751,869
Other costs and expenses 1,647,506 1,610,523
Interest income -- 246
Interest expense (82,525) (90,186)
Net income before
extraordinary item $ 497,055 $ 51,406
Extraordinary item:
Gain on subordinated debt
restructuring -- 194,500
Net income $ 497,055 $ 245,906
Weighted average number
of common and common
equivalent shares
outstanding:
Basic 7,366,670 6,350,428
Diluted 7,593,936 6,399,177
Basic amounts per common
share:
Net income per share
before extraordinary
gain $ 0.07 $ 0.01
Extraordinary gain
per share $ 0.00 $ 0.03
Basic net income
per share $ 0.07 $ 0.04
Diluted amounts per common
share:
Net income per share
before extraordinary
gain $ 0.07 $ 0.01
Extraordinary gain
per share $ 0.00 $ 0.03
Diluted net income
per share $ 0.07 $ 0.04
MFIC CORPORATION
MFIC Corporation, through its wholly-owned subsidiaries, Microfluidics Corporation and MediControl Corporation, its Microfluidics Division, as well as its other operating divisions, Epworth Mill and Morehouse-COWLES, specializes in producing and marketing a broad line of proprietary fluid materials processing systems used for a variety of grinding, mixing, milling, and blending applications across a variety of industries and for use in numerous applications within those industries.
The Company's Microfludizer materials processor device is based on patents and related technology that were licensed by the Company from Arthur D. Little & Co. in 1983 and subsequently purchased by the Company in 1985. The Company holds two United States patents related to the apparatus and process used to intimately mix liquids and disperse particulate solids in microemulsions. Microfluidizer materials processing equipment, produced by the Company's Microfluidics Division, is used to formulate emulsions, dispersions, and liposomes, and is used in cell disruption. The Company's Microfluidizer device is used in processing industries to mix materials that are normally very difficult to mix. The Microfluidizer device allows manufacturers in the chemical, pharmaceutical, biotechnology, cosmetic, and food processing industries to produce higher quality products with better characteristics on a more consistent basis than with other blending and mixing techniques.
The Company's Epworth Mill products consist of ball mills and horizontal media mills. The division is also engaged in the sale and distribution of grinding media. The division's ball mills are used in coarse grinding application of liquid slurries or dry materials such as ore from mines or coarse slurries of material that will later be processed into finer slurries. The ball mills use large media in a horizontal rotating cylindrical vessel to crush and grind the product being processed. The Epworth Mill Division's patented Zinger horizontal media mill utilizes a unique design for grinding and dispersing solid materials in a liquid carrying medium. The design is based upon established rotating, horizontal shaft technology but adds the unique capability of enhanced mechanical activity between the grinding media and the product formulation. The enhanced mechanical activity is achieved through a unique combination of rotating discs and a specially designed containment vessel. In comparison to traditional horizontal media mills, the Zinger technology has demonstrated improved productivity in terms of greater volumes of product processed at acceptable quality than the comparably sized and priced horizontal media mills.
The Company's Morehouse-COWLES products consist of vertical, rotary shaft technology that can be fitted with various blades, discs or mixing devices and are used for a variety of blending, mixing, deagglomerating and dispersing applications in a variety of industries including the protective and conductive coating, ink and pigment, pharmaceutical, and food industries. As one of the early inventors of dispersers, dissolvers, colloid mills, and media mills, the COWLES name is an industry-accepted symbol |
