In This Article:
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Q4 Revenue: $6.3 million, up 48% from last year's Q4.
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Annual Revenue: $25.4 million, 40% growth year-over-year.
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Antigens Revenue Growth: Up 50% in Q4; 44% annually.
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Caps Revenue Growth: Up 42% in Q4; 38% annually.
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Gross Margin: 55% in Q4; 53% annually, up from 40% last year.
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EBITDA: 18% for Q4.
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Kinlytic Milestone Payments: $3 million recognized in Q1.
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Share Repurchase: 2.6 million shares, over 2% of total shares.
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Capital Investment: Close to $2 million in facilities and technology.
Release Date: December 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Microbix Biosystems Inc (MBXBF) achieved a 40% revenue growth in fiscal 2024, reaching the upper range of their target growth rate of 20% to 40%.
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The company reported record revenues of $6.3 million in Q4, marking a 48% increase from the previous year.
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Both the antigens and CAPS businesses experienced significant growth, with antigens up 50% and CAPS up 42% in Q4.
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Microbix Biosystems Inc (MBXBF) maintained strong operational control, achieving positive EBITDA, net earnings, and cash flow while actively repurchasing shares.
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The company is expanding its market reach, acquiring new customers in North America, the EU, and Asia, and is committed to maintaining a compound annual growth rate of 20% to 40%.
Negative Points
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The company faces potential risks from US tariffs, which could impact their business and future growth prospects.
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There is no specific guidance provided for gross margins in 2025, with expectations only set at a target of around 60%.
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The company acknowledges the need for continued investment in infrastructure and SG&A, which may offset operating leverage.
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Microbix Biosystems Inc (MBXBF) has not seen significant changes in its board of directors, raising concerns about the need for new perspectives.
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The company is cautious about telegraphing its moves in oncology and genetic testing, which may limit transparency for investors.
Q & A Highlights
Q: What's the outlook for gross margins in each segment and for the total company for 2025? A: James Currie, CFO, stated that while they don't typically provide forward guidance, they are targeting a margin of around 60%. Cameron Groome, CEO, added that they are aiming for higher gross margins through operational efficiencies and intelligent pricing, with some quarter-to-quarter fluctuations expected.
Q: Do you expect the growth rate in the antigen and CAHPS businesses to taper off? A: Cameron Groome, CEO, indicated that they do not expect growth to taper off. Both the antigens and CAHPS businesses are expected to continue growing, with a target compound annual growth rate of 20% to 40%.