Strong demand from biopharm companies underpinned the improved financials, according to Microfluidics, and targeting this sector is the centrepiece of the company’s strategy for the next 12 months.
“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", explained Michael Ferrara, president and CEO of Microfluidics.
Adopting this strategy is intended to drive continuation of the upwards trend seen in the first quarter results. Revenues grew year-on-year by 21 per cent to $4.3m, with the North American market accounting for the bulk of these sales.
In the first quarter Microfluidics generated revenues of $2.6m from North America, up 10 per cent year-on-year. European revenues grew by 61 per cent to $1.2m. These improvements helped Microfluidics turn a $690,000 operating loss in the first quarter of 2009 into a $106,000 profit.
Furthermore, over the past 18 months Microfluidics, a processing and formulation equipment business, has implemented a number of cost control initiatives which have helped improve its finances. Operating expenses declined year-on-year by five per cent to $2.3m.
The company also achieved its 60 per cent gross margin target. In its full year 2009 results Microfluidics posted a gross margin of 60 per cent, up from 51 per cent the previous year.
"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," summarised Peter Byczko, vice president of finance and chief accounting officer.