Business
Microbix's virology revenue grows 24% in third quarter, company reports fourth consecutive quarterly profit
  Management Provides Detailed Corporate Update TORONTO , Aug. 14, 2014 /CNW/ -&#...
About this update from Microbix Biosystems Inc.
[{"type":"text","content":"\n\n Management Provides Detailed Corporate Update\n\n\n\nTORONTO, Aug. 14, 2014 /CNW/ - Microbix Biosystems Inc. (TSX: MBX), an innovator of biological products and technologies, today reported financial results for its third quarter and nine months ending June 30, 2014. \n\nThird Quarter Financial Results\n\nFor the third quarter, Microbix reported total revenue of $2,039,935, compared to $1,906,652 for the same period in 2013, or an increase of 7%. There was no R&D contract revenue in the third quarter, compared to $256,745 in R&D contract revenue in the same period in 2013. Virology products revenue was $2,039,935 in the third quarter, compared to $1,649,907 for the same period in 2013, or an increase of 24%. The higher virology products revenue was primarily due to continued growth in customer demand including significant new business from an existing customer, as well as a favourable currency impact. R&D contract revenue typically fluctuates with customer priorities.\n\nTotal expenses for the third quarter were $856,059 compared to $947,252 for the same quarter in 2013, or a 10% reduction primarily due to various cost saving initiatives implemented in the past year.  Operating income before income taxes for the second quarter was $294,561 compared to an operating loss of $22,687 for the same quarter last year.\n\nNet cash flow decreased in the third quarter by $697,719, compared to a decrease of $71,931 for the same period in 2013.  The decline was primarily due to the investment in property, plant and equipment, primarily to build the LumiSort™ demonstration instrument; as well as intangible assets, in defense of the VIRUSMAX® patents, totaling $1,467,802; partially offset by the conversion of warrants during the quarter of $545,511 and the improvement in operating cash flow of $212,923.\n\nNine-Month Financial Results\n\nIn the first nine months of fiscal 2014, Microbix reported total revenue of $6,040,917, compared to $5,105,693 for the same period in 2013, or an increase of 18%. Virology products revenue was $5,852,548 for nine months compared to $4,301,328 for the same period in 2013, or an increase of 36%.  Strong customer demand and a favourable currency impact are the main drivers of this growth.  R&D contract revenue for nine months was $140,772 compared to...