MBX Biosciences, Inc.-Microbix Reports Results for Q2 Fiscal 2025

Core Insights - Microbix Biosystems Inc. reported Q2 and H1 fiscal 2025 results, showing a mixed performance with improved gross margins but a decline in overall revenues compared to the previous year [1][2][6]. Financial Performance - Q2 revenue was $5.3 million, a 5% decrease from$ 5.6 million in Q2 2024, with antigen revenues increasing by 5% to $4.3 million, while QAPs revenues fell by 38% to$ 864,320 due to delays in assay-development programs [3][10]. - H1 revenue totaled $11.4 million, a 19% decrease from$ 14.0 million in H1 2024, influenced by the absence of $4.1 million in Kinlytic licensing payments; excluding this, revenues increased by 14% [6][8]. - Gross margin for Q2 improved to 60% from 53% in the previous year, driven by better manufacturing efficiencies and pricing strategies [4][10]. - H1 gross margin was 61%, slightly down from 65% in H1 2024, but improved by 10% when excluding the impact of Kinlytic licensing revenues [7]. Operating Expenses and Income - Operating expenses in Q2 increased by 21% compared to Q2 2024, primarily due to higher investments in R&D and sales and marketing [4][10]. - Q2 net income was$ 20,664, a significant drop from $377,730 in Q2 2024, while H1 net income was$ 877,627 compared to $2.8 million in H1 2024, largely due to the absence of Kinlytic licensing fees [5][8]. Cash Position and Liquidity - Cash and equivalents at the end of Q2 stood at$ 14.5 million, an increase of $1.5 million from the previous quarter, despite debt repayments and share repurchases [5][10]. - The current ratio improved to 9.68, and the debt to equity ratio decreased to 0.27, indicating enhanced financial strength [9][10]. Business Outlook - Management expressed a cautious outlook for the second half of fiscal 2025, particularly for the Antigens business, due to reduced sales into China [2][11].