Business
Microbix Reports Results for Q2 Fiscal 2025
MISSISSAUGA, Ontario, May 15, 2025 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. ( TSX: MBX, OTC...
About this update from Microbix Biosystems Inc.
[{"type":"text","content":"Microbix Reports Results for Q2 Fiscal 2025Revenues of $5.3 million, Improved Gross Margin, and Positive Net Income\n\n\n\n MISSISSAUGA, Ontario, May 15, 2025 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (\n \n TSX: MBX, OTCQX: MBXBF, Microbix®\n \n ), a life sciences innovator, manufacturer, and exporter, reports results for its second quarter and first half of fiscal 2025 ended March 31, 2025 (“\n \n Q2\n \n ” and “\n \n H1\n \n ”). Sales for Q2 and H1 reflected differential growth between Antigens (up) and QAPs™ (down), alongside a markedly-improved gross margin.\n \n\n\n Management Discussion\n \n\n Results for H1 were largely satisfactory, with recurring revenues increasing by 14% to $11.4 million, gross margin on those sales increasing by 10% to 61%, and net income of $0.9 million. Financial strength was also improved, with record cash & equivalents and overall liquidity, even after a material debt repayment and share repurchases. New business development is proceeding well but management’s outlook for the second half of fiscal 2025 has become more guarded, mainly due to reduced sales into China.\n \n\n\n Quarter ending March 31, 2025 (“Q2”)\n \n\n Q2 revenue was $5,324,864, 5% below Q2 2024 revenues of $5,632,901. Included in Q2 were antigen revenues of $4,317,532 (2024 - $4,111,462), up 5% from last year. QAPs revenues of $864,320 were down 38% from Q2 2024 ($1,399,536), due to delays with the assay-development programs of one test-manufacturer customer. Revenue from royalties were $143,012 (2024 - $121,843). In summary, our Q2 sales increase in Antigens was more than offset by the decrease in our QAPs deliveries.\n \n\n Q2 gross margin percentage was 60%, up from 53% last year. The higher gross margin was driven by improved manufacturing efficiencies, pricing, product mix, and favourable currency exchange rates. Operating expenses (including finance expenses) in Q2 increased by 21% relative to Q2 2024, principally due to increased investment in research and development projects, sales and marketing activities, and increased net financing charges.\n \n\n Overall, Q2 revenues and stronger margins were offset by increased operating expenses which led to a net income of $20,664 versus Q2 2024 net income of $377,730. Cash provided by operating activities was $9...