MISSISSAUGA, Ontario, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator, manufacturer, and exporter, reports results for its first quarter of fiscal 2025 ended December 31, 2024 ("Q1"). Results for Q1 demonstrated the results of ongoing efforts to increase recurring sales of Microbix's diagnostic-test related ingredients and devices businesses, work that resulted in a 40% year-over-year increase in such revenues and material net income for the quarter.
Management Discussion
Results for Q1 show robust growth in recurring sales of Microbix's test ingredients ("Antigens") and test quality assessment products ("QAPs"), which exceeded C$ 6.0 million (collectively up by 40% for Q1 versus prior year). These Q1 revenues generated solid margins and led to net earnings of $0.9 million. Microbix continues targeting annual sales growth in the range of 20 to 40%.
Quarter ending December 31, 2024 ("Q1")
For Q1, total revenue was $6,044,002. Within that total, antigen revenues were $4,266,758 (Q1 2024 - $1,953,677), up 118% from last year due to continuing strong demand. In turn, QAPs revenues were $1,626,980, down 28% from last year (Q1 2024 - $2,248,236) due to reduced activity from test manufacturers versus the prior year period and specifically relating to delays in test-development programs of one such customer. Revenue from royalties were $150,263 (Q1 2024 - $119,311). There were no non-recurring customer revenues in Q1, as compared to $4,086,660 in non-recurring Kinlytic licensing revenues generated in Q1 2024, that drove total revenues to $8,407,884, of which $4,321,224 were diagnostics-related and from recurring clients. In summary, our level of revenues for Q1 was driven by strong growth in recurring revenues derived from segments of our core diagnostics-related businesses.
Overall Q1 gross margin percentage was 62%, down from 74% last year. In the prior year however, the higher Q1 2024 gross margins were strongly assisted by Kinlytic licensing revenues, to which no COGS were attached. When compared without the impact of the Kinlytic licensing revenues, Microbix's margins for Q1 were 62%, compared to 49% in Q1 2024 and constituting a year-over-year improvement of 13% due to improved efficiencies, pricing, product mix, and currency exchange rates.
Operating expenses (including finance expenses) in Q1 decreased by 23% relative to Q1 2024, principally due to significant Q1 2024 consulting fees incurred relating to the Kinlytic licensing agreement.
Overall, strong Q1 revenues and improved margins led to net income of $856,962 without any Kinlytic-related revenues versus Q1 2024 net income of $2,455,379 inclusive of Kinlytic-related revenues. Cash provided by operating activities was $792,702, compared to cash provided by operating activities of $1,338,952 in Q1 2024.
At the end of Q1, Microbix's current ratio (current assets divided by current liabilities) was 6.62 and its debt-to-equity ratio (total debt over shareholders' equity) was 0.36. Both ratios were impacted by share repurchases during Q1, which utilized $511,000 toward the cancellation of 1.6 million shares.
| Financial Highlights | |||||
| As at and for the quarter ended | December 31, 2024 | December 31, 2023 | |||
| Total Revenue | $ | 6,044,002 | $ | 8,407,884 | |
| Gross Margin | 3,752,680 | 6,222,331 | |||
| SG&A Expenses | 2,182,987 | 3,168,248 | |||
| R&D Expense | 599,602 | 484,219 | |||
| Financial Expenses | 113,129 | 114,485 | |||
| Operating Income for the period | 856,962 | 2,455,379 | |||
| Net Income and Comprehensive Income for the period | 856,962 | 2,455,379 | |||
| Cash Provided (Used) by Operating Activities | 792,702 | 1,338,952 | |||
| December 31, 2024 | September 30, 2024 | ||||
| Cash | 13,048,042 | 12,963,339 | |||
| Accounts receivable | 4,920,133 | 4,161,448 | |||
| Total current assets | 25,694,233 | 24,259,962 | |||
| Total assets | 39,299,147 | 38,096,767 | |||
| Total current liabilities | 3,878,607 | 3,394,822 | |||
| Total liabilities | 10,399,071 | 9,799,339 | |||
| Total shareholders' equity | 28,900,076 | 28,297,428 | |||
| Current ratio | 6.62 | 7.15 | |||
| Debt to equity ratio | 0.36 | 0.35 | |||
Corporate Outlook
Microbix will continue driving sales growth across all of its business lines, while working to keep improving percentage gross margins, and delivering bottom-line results. Management currently expects Microbix to generate meaningful year-over-year growth in revenues across full-year fiscal 2025.
Furthermore, at 11:00 AM ET on Thursday, February 13th, Microbix intends to hold a webinar discussion of Q1 results with its CEO, CFO, and COO.
Investor and shareholders can participate in the webinar, hosted by Adelaide Capital, by registering at: https://us02web.zoom.us/webinar/register/WN_ejHyZS7-Rle5Mq3T6kfvmQ. It will also be live-streamed to YouTube at: https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw.
A replay of the webinar will also be made available on Adelaide Capital's YouTube channel.
About Microbix Biosystems Inc.
Microbix Biosystems Inc. creates proprietary biological products for human health, with over 120 skilled employees and revenues now targeting C$ 2.0 million or more per month. It enables the worldwide commercialization of diagnostic assays by making a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the antibody tests of approximately 100 diagnostics makers, while QAPs are sold to clinical lab accreditation organizations, diagnostics companies, and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 & 13485 accredited, U.S. FDA registered, Australian TGA registered, Health Canada establishment licensed, and provides IVDR-compliant CE marked products.
Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic® urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (e.g., its DxTM for patient-sample collection). Microbix is traded on the TSX and OTCQX, and headquartered in Mississauga, Ontario, Canada.
Forward-Looking Information
This news release includes "forward-looking information," as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, discussion of financial results or the outlook for the business, risks associated with its financial results and stability, its current or future products, development projects such as those referenced herein, access and sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions, and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain, and that actual performance may be affected by many material factors, some of which are beyond the Company's control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions, and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company's judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.
Please visit www.microbix.com or www.sedarplus.ca for recent Microbix news and filings.
For further information, please contact Microbix at:
| Cameron Groome, CEO (905) 361-8910 | Jim Currie, CFO (905) 361-8910 | Deborah Honig, Investor Relations Adelaide Capital Markets (647) 203-8793 ir@microbix.com | |||
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