MFIC's Q4/04 sales show 13.8% sequential increase from Q3/04 and almost tripling of backlog:
MFIC Corporation Announces Preliminary Unaudited Fiscal 2004 and Fourth Quarter Sales Results
Thursday January 13, 8:00 am ET
NEWTON, Mass.--(BUSINESS WIRE)--Jan. 13, 2005--MFIC Corporation ("MFIC" or the "Company")(OTCBB: MFIC - News) announced today its preliminary and unaudited fourth quarter and fiscal 2004 sales results. The reported results reflect the ongoing operations of the Company's sole operating subsidiary, Microfluidics Corporation, and exclude the discontinued operations of the divested Morehouse-COWLES Division.
Unaudited consolidated sales from ongoing operations in the fourth quarter of 2004 were approximately $3.6 Million. This compares with consolidated sales of approximately $2.5 Million from ongoing operations in the fourth quarter of 2003. Unaudited consolidated sales for the, 2004 fiscal year were approximately $12.2 from ongoing operations, as compared to approximately $10.5 Million from ongoing operations for the 2003 fiscal year.
Overall backlog at December 31, 2004 was approximately $3.1 Million compared to a backlog attributable to ongoing operations at December 31, 2003 of approximately $1.1 Million.
Robert P. Bruno, President and COO, stated "We exceeded our total sales revenue target for both the fourth quarter and for all of the 2004 fiscal year. For the 2004 fiscal year the total unit sales of our M700 Series Microfluidizer® processor increased by 57% over the 2003 fiscal year total unit sales. The M700 Series is our newest product line and has been well received by all of the industries that we serve, but to the largest extent by the pharmaceutical industry where it is used for both pilot and production processing."
Irwin Gruverman, CEO and Chairman, stated "Management is pleased with the revenue results attained in 2004. This is especially so in light of the fact that the Company did not divest its Morehouse-COWLES Division until February 2004, which operations diverted both human and financial resources from MFIC's core Microfluidics business. In the first quarter we were able to raise capital and restructure our debt loan facility on a favorable basis. During 2004 we invested in R&D, infrastructure and marketing/sales for Microfluidics at a significantly higher rate than we had been able to undertake for several years. The results have been very positive and our business is on solid footing with excellent prospects for continuing our currently positive trends going forward.
Management anticipates that the Company will report operating profitability for 2004 from continued operations. However, the net income will reflect the loss incurred in 2004 from discontinuing the operations of the Morehouse-COWLES Division and an increase in operating expenses to fund our investment in the operations of its Microfluidics Division. Final results are dependent on the completion of our year-end audit and are expected to be released in March. Booked orders, inquiry and quotation levels in the fourth quarter of 2004 were strong, and backlog remains at a high level."
Management believes that this release contains forward-looking statements that are subject to certain risks and uncertainties including statements relating to the Company's plan to attain and/or increase operating profitability and /or to achieve net profitability. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results achieved by the Company to differ materially from those described in the forward-looking statements. The Company cautions investors that there can be no assurance that the actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including but not limited to the following risks and uncertainties: (i) whether the performance advantages of the Company's Microfluidizer® materials processing equipment or that a commercial market for the equipment will continue to develop, (ii) whether the performance advantages of the Company's MMR nanoparticle production systems will be realized commercially, (iii) whether the Company will be able to increase its market penetration and market share, and (iv) whether the Company will have access to sufficient working capital through continued and improving cash flow from sales, proceeds from its private placement equity offering, and ongoing borrowing availability, the latter being subject to the Company's ability to comply with the covenants and terms of its loan agreement with its senior lender.
MFIC CORPORATION
MFIC Corporation, through its Microfluidics Division, provides patented and proprietary high performance Microfluidizer® materials processing equipment to the biotechnology, pharmaceutical, chemical, cosmetics/personal care, and food industries. MFIC applies its 20 years of high pressure processing experience to produce the most uniform and smallest liquid and suspended solid structures available, and has provided manufacturing systems for nanoparticle products for more than 15 years. The Company is a leader in advanced materials processing equipment for laboratory, pilot scale and manufacturing applications, offering innovative technology and comprehensive solutions for nanoparticles and other materials processing and production. More than 3,000 systems are in use and afford significant competitive and economic advantages to MFIC equipment customers.
Contact:
MFIC Corporation
Irwin Gruverman, 617-969-5452
CEO & Chairman
info@mfics.com
or
Robert P. Bruno, 617-969-5452
President & COO,
info@mfics.com
or
Jack M. Swig, 617-969-5452
Investor Relations
info@mfics.com |
