Nanotechnology

[shmoopy38]

MFIC out with news of record revenues in Q4/06:

MFIC Corporation Announces Record Unaudited Fourth Quarter and Fiscal 2006 Revenues
Monday February 5, 12:21 pm ET
MFIC Attains Both Record $5 Million Quarterly and $15.7 Million Annual Revenue Results

NEWTON, Mass.--(BUSINESS WIRE)--MFIC Corporation ("MFIC" or the "Company") (OTCBB: MFIC - News) announced today its preliminary and unaudited fourth quarter and fiscal 2006 revenue results.

Unaudited preliminary revenue in the fourth quarter of 2006 was approximately $5.0 Million. This compares with revenue of approximately $3.1 Million in the fourth quarter of 2005. This result represents an increase of $1.9 Million, or 61%, over the comparable period in 2005. Unaudited preliminary revenues for 2006 were approximately $15.7 Million, as compared to approximately $11.6 Million for 2005, an increase of 35%.

Order backlog at December 31, 2006 was approximately $3.1 Million as compared to a backlog at December 31, 2005 of approximately $2.8 Million. Order backlog at September 30, 2006, was $4.9 Million.

Robert P. Bruno, President and COO, stated, "We are pleased with the significant expansion of both the fourth quarter and annual revenues in 2006. The results were, in large part due to the increase in the number of laboratory unit sales and, in particular, the strong demand for the Company's improved M-110EH-30 system, introduced in the last quarter of 2005.

Also, several large pharmaceutical systems were delivered, one of which included our newly standardized M-7250 systems for the BioPharm industry. This system included our Constant Pressure feature with Ultra Clean in Place and Steam in Place (SIP) for aseptic processing of drugs. These latter features enable compliance with cGMP regulatory requirements, which are critical for the pharmaceutical industry. The system incorporated our new system architecture integrating the machine, all machine controls, functions and data recording onto a single common platform (see more details under Quarterly Highlights).

Going forward in 2007, we remain optimistic about continued revenue growth, in particular to the bio-pharmaceutical industries, where we are expecting our standardized systems to be widely accepted."

Irwin Gruverman, CEO and Chairman, stated, "Revenue expansion for 2006 exceeded our internal projections.

During 2006 we saw, in part, the economic realization of our substantial and continuing investment in R&D, infrastructure development and marketing/sales. We believe that the product and features developments achieved in the past few years, combined with ongoing applications and other initiatives enabled by continued R&D spending will keep us in a leadership position and permit continued growth in 2007.

Final results are dependent on the completion of our year-end audit and are expected to be released in March."

Mr. Gruverman added, "We continue to experience positive trends in equipment inquiry and sales quotation, sales bookings and backlog, which stood at approximately $3.8 million at January 31st."

Fourth Quarter 2006 Company Highlights

Sold an unprecedented number of laboratory units and experienced strong demand, in particular for the improved Model M-110EH-30
Introduced and shipped the first newly standardized M-7250 system for the BioPharm industry, which includes our Constant Pressure feature with Ultra Clean in Place and Steam in Place (SIP). The system incorporates our new system architecture integrating the machine, all machine controls, functions and data recording onto a single common platform. A Program Logic Control (PLC) is also integrated to manage and record sensor signals, system alarms, and interlocks. The PLC will process all of this captured information chronologically to provide the customer with real time "Event Log" data for cGMP monitoring and to assure that the machine will act correctly during adverse events.
Signed a new 5 year lease for the Company's administrative, sales, and manufacturing facilities which allowed us to begin a major expansion and improvement of production space and operations and to commence construction on a new, upgraded Applications Laboratory.
Forward Looking Statement:

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 attain and/or increase operating profitability and/or to achieve net 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® 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 timing of orders will significantly affect revenues and resulting net income for particular quarters in a manner that could cause increased volatility in the Company's stock price, and (v) whether the Company will have access to sufficient working capital through continued and improving cash flow from sales 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

MFIC Corporation, through its Microfluidics subsidiary, provides patented and proprietary high performance Microfluidizer® materials processing equipment to the biotechnology, pharmaceutical, chemical, cosmetics/personal care, and food industries. The equipment enables the manufacture and formulation of numerous nanomaterials and nanoscale products. 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 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. For more information please visit http://www.microfluidicscorp.com/.



Contact:
MFIC Corporation
Irwin Gruverman, CEO & Chairman
Robert P. Bruno, President & COO
Jack M. Swig, Investor Relations Manager
617-969-5452
Fax: [phone]
[e-mail]
or
Kawski Investor Relations, Inc.
James L. Kawski, 978-490-6827

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Source: MFIC Corporation