Wall Street Reporter Focuses on MFIC's Recapitalization, R&D Initiatives and Progress, New Product Features and Prospects for 2005; New Interview with MFIC CEO, Irwin Gruverman. Full Interview Available at WSR Website
The interview can be heard online at the Wall Street Reporter website at http://www.wallstreetreporter.com/profiles/MFICCorporation.html and serves to familiarize investors with MFIC, giving them insight into the Company's background, 2004 financial turnaround, products, and management team of the Company. The in-depth interviews conducted by WSR are geared toward sophisticated investors who require an unbiased, unscripted first-hand perspective to assist them in making informed investment decisions.
“We have supported expanded Investor Relations efforts to create an awareness of our position as a financially-sound business with a strong core and a new initiative in nanomaterials manufacturing with the proprietary MMR component. These have the potential to propel us to a much higher value level over time”
Mr. Gruverman focused on the initial results of the reinvigorated R&D effort. The program has already resulted in the development and introduction of a constant operating pressure option. This "Constant Pressure" option increases the longevity of many system parts and results in an improved process with less cycle time and energy consumption. The Company, as recently announced, has already received orders for five systems equipped with Constant Pressure and has shipped its first system. Additionally, Mr. Gruverman reviewed the financial re-engineering of MFIC, which occurred in the first quarter of 2004. The Company is now out of debt (on a net liability basis) and can commit approximately $2 million to new initiatives.
Current efforts include R&D for product enhancements in the Microfluidics core business, new product development, and expansion of the marketing and sales efforts. Resources have been committed to several programs. Mr. Gruverman stated "We have hired key people in engineering, marketing/sales and R&D functions. We have initiated several exciting projects using our Microfluidizer(R) Mixer/Reactor (MMR) technology for the production of nanoparticles through fast reaction chemistry and plan a multi-year effort to confirm MFIC as a leader in nanotechnology materials manufacturing. Marketing and development of MMR systems and applications will be included in this effort. A particular goal is to exploit the major opportunity presented by continuous chemical reactor technology.
Our core Microfluidizer(R) processing system business will commit to increase our market penetration from the few percent that we now enjoy to several times that level. We plan to bring on industry segment specialists to focus on finding new applications and expanding upon existing applications in the many industries benefited by our unique high pressure fluid processing technology."
Marketing and sales are centralized and a strong core team leads an extensive network of agents and distributors in North America, Europe and Asia. Currently, about 80% of Microfluidizer processor system sales are to the pharmaceutical and biotech industries. Most sales revenues are derived from Fortune 500 companies.
"We have supported expanded Investor Relations efforts to create an awareness of our position as a financially-sound business with a strong core and a new initiative in nanomaterials manufacturing with the proprietary MMR component. These have the potential to propel us to a much higher value level over time" commented Mr. Gruverman. "We are seeking to resume listing on a National exchange."
Management believes that this release contains forward-looking statements that are subject to certain risks and uncertainties including statements relating to the Company's plan to increase revenues and attain and/or increase operating profitability. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results achieved by the Company to differ materially from those described in the forward-looking statements. The Company cautions investors that there can be no assurance that the actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including but not limited to the following risks and uncertainties: (i) whether the performance advantages of the Company's Microfluidizer(R) materials processing equipment or that a commercial market for the equipment will continue to develop, (ii) whether the performance advantages of the Company's MMR nanoparticle production systems will be realized commercially, (iii) whether the Company will be able to increase its market penetration and market share, (iv) whether the Company's expectation that the benefits of nanotechnology will, in part, be realized by the ability of the MMR to produce innovative materials in large quantities, (v) whether the Company is able to increase the number of prototype MMR placements and then manufacture and introduce commercial production MMR equipment, and (vi) whether the Company will be able to increase its market penetration and market share, (vii) whether the timing of orders will significantly affect quarterly revenues and resulting net income results for particular quarters which may cause increased volatility in the Company's stock price, and (viii) whether the Company will have access to sufficient working capital through continued and improving cash flow from sales, proceeds from its private placement equity offering, and ongoing borrowing availability, the latter being subject to the Company's ability to comply with the covenants and terms of its loan agreement with its senior lender.
MFIC Corporation, through its Microfluidics Division, provides patented and proprietary high performance Microfluidizer(R) materials processing equipment to the biotechnology, pharmaceutical, chemical, cosmetics/personal care, and food industries. MFIC applies its 20 years of high pressure processing experience to produce the most uniform and smallest liquid and suspended solid structures available, and has provided manufacturing systems for nanoparticle products for more than 15 years. The Company is a leader in advanced materials processing equipment for laboratory, pilot scale and manufacturing applications, offering innovative technology and comprehensive solutions for nanoparticles and other materials processing and production. More than 3,000 systems are in use and afford significant competitive and economic advantages to MFIC equipment customers.