Microfluidics International first-quarter revenue up 21%

Microfluidics International CorporationMay 11 2010

Microfluidics International Corporation (OTC Bulletin Board: MFLU), today reported unaudited financial results for the first quarter ended March 31, 2010.

First quarter and recent accomplishments:

• Generated $4.3 million in revenue for the first quarter, a 21% increase over the same period in 2009
• Earned net income for the first quarter of $106,000 or $0.01 per share, compared to a loss of $690,000, or $0.07 per share, in the first quarter 2009
• Achieved $366,000 in earnings before interest, taxes, depreciation and amortization (EBITDA)
• Continued to achieve 60% gross margin target
• Launched the LV1 low volume Microfluidizer® processor—that can bring scalable high shear processing materials to significantly smaller sample sizes—eliminating waste and saving customers money

"The first quarter of 2010 marks the third consecutive quarter that Microfluidics has generated net income and consistently achieved our 60% gross margin target," said Michael C. Ferrara, President and Chief Executive Officer of Microfluidics. "Our growth is being driven by continued strong demand for our products in the biopharmaceutical markets. As we look to the remainder of the year, our goal is to leverage additional growth from the biopharmaceutical markets by introducing new products, expanding our service offerings and continually improving product quality and customer service."

"We are extremely pleased to report a great start to the year with revenue growth,  strong gross margin and improved earnings per share in the first quarter," said Peter Byczko, Vice President of Finance and Chief Accounting Officer. "Our financial results reflect strong performance in the biopharmaceutical markets and the continued realization of multiple cost control initiatives implemented over the last 18 months. We will continue to work to improve the financial position of the Company."

First Quarter Financial Results:

Revenues for the three months ended March 31, 2010 were $4.3 million, an increase of $0.7 million, or 21%, as compared to revenues of $3.5 million for the three months ended March 31, 2009. North American revenues were $2.6 million, an increase of 10%, as compared to $2.4 million in the first quarter of 2009. European revenues were $1.2 million, an increase of $0.4 million, or 61%, from $0.7 million for the first quarter of 2009. This increase is attributable to pricing actions taking effect and appropriately adjusting our pricing. Our gross margin held at 60% in the first quarter of 2010. Net income was $106,000, or $0.01 per diluted share, for the three months ended March 31, 2010 as compared to a net loss of $0.7 million, or ($0.10) per diluted share, for the same period in 2009.

EBITDA was $366,000 for the three months ended March 31, 2010 compared with a $480,000 EBITDA loss for the same period in 2009. EBITDA is a Non-GAAP financial measure. A reconciliation of GAAP net income to Non-GAAP EBITDA is provided in the financial tables that accompany this release and is discussed under the section below titled "Non-GAAP Financial Measures."