Microfluidics Intl (fka MFLU)

[cfoofme]

From RB board and Andre who attended stockholder meeting:

By: andre727
18 Jun 2010, 05:10 PM EDT
Rating: Rate this post: Msg. 466 of 469
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OK. I just got home, have about 25 minutes before getting ready to head out again, and I'll try my best to at least begin my report on the annual meeting. I may have to pause for a bit to use the Internet to determine information like the correct spelling of people's names, etc.

First of all, in order to set the scene, I thought it would be useful to identify at least some of the people who were there. Of course, the company's officers were there (http://www.microfluidicscorp.com/index.php?option=com_content&view=article&id=41&Itemid=9), as were the directors. Former director Jim Little was there as well in his capacity as shareholder of the company. There were NO (zero) members of the former management team in attendance. Other prominent people present were the respective managers of American and "West Asia" sales Bill Kober...and European and "East Asia" sales Xavier Leroy. Former Asian head of sales Kenneth Chu was there as well (it struck me that he was there as a means by which people could say good-bye to this kindly, older Oriental gentleman).

And both before and after the meeting, I had the opportunity to speak with many of the above...and overheard others' conversations with many of the above.

Some key bits of information in which other investors may have an interest include the following:

"We had a good quarter last quarter and we're having a good quarter this quarter."

"The two new directors bring an extraordinary level of expertise and connctions to the table. If we were to pay them as consultants, it would cost the firm many, many times the relatively small amount of money they'll get as directors".

I'm running out of time but let me make mention of one of my biggest concerns about Microfluidics...and that's the loss of the $2.5 annual revenues in Japan that the company generated in 2004 and 2005 which came to an abrupt halt during the third quarter of 2006.

Powrex in Japan seems like the real deal as a committed partner of the company. I learned that they've already spent $600,000 in promoting the company's products, most notably the MRT but also other company products. While they seem absolutely astonished by the potential of the MRT, they have also already generated orders for the company's Microfluidizer line. I further learned that when there may have been a company "all hands on deck" sales meeting in the past, MAYBE one Mizuho rep would show up. Powrex sends at least 4 people nowadays.

That's GREAT news. If Microfluidics can once again become a player in Japan, that's clearly preferable to having almost no presence in Japan aside from getting approximately $100,000 in spare parts orders from Mizuho each quarter.

I think we're all in agreement that this company needs growth. And I'll discuss that need for growth in my next entry. But Powrex may be one means that the company might ratchet their revenue levels into higher territory.

OK...that's all for now.

I'll have more on the MRT and other topics as well. Stay tuned.