TUALATIN, Ore., Nov. 21, 2005 (PRIMEZONE) -- microHelix, Inc. (OTCBB:MHLX), a manufacturer of custom cable assemblies and mechanical assemblies for the medical, commercial and defense markets, today announced its financial results for the third quarter ended September 30, 2005.
The Company reported its first ever quarterly net profit since its initial public offering in November 2001. For the quarter ended September 30, 2005, the company reported a net profit of $9,730, or $.00 per share. After accruing for preferred shareholder dividends of $84,375 (which have not been declared or paid), the Company reported a net loss of $74,645, or $(.03) per share for the quarter ended September 30, 2005. For the quarter ended September 30, 2004, the Company reported a net loss of $97,993, or $(.06) per share.
Revenues were $2,853,555 for the quarter ended September 30, 2005, an increase of $2,438,928 compared to $414,627 for the same quarter in 2004. This revenue increase was primarily due to the acquisition of Moore Electronics, Inc. in April 2005.
Revenues for the nine months ended September 30, 2005 were $5,715,834, an increase of $4,831,995 compared to revenues of $883,839 for the first nine months of 2004. The Company reported a net loss of $1,016,141, or $(.50) per share for the first nine months of 2005 compared to net loss of $1,223,984, or $(.73) per share for the same period in 2004.
Ty Pettit, President and Chief Executive Officer, commented, "We are obviously very pleased to be able to report our first quarterly net profit. The acquisition of Moore Electronics provided us with critical mass in a number of areas including a greatly expanded customer base, a source of repetitive business, additional manufacturing capacity and infrastructure that significantly improves our core cash flow. Both our Moore Electronics Division in Portland, Oregon and our Ultrasound Division in Tucson, Arizona and Nogales, Mexico are performing well. We remain focused on building revenues and profitability while managing our costs consistent with our sales growth."
Jim Williams, Chairman of the Board of Directors, continued, "This quarter's encouraging results represent an important milestone for microHelix and a very significant accomplishment by the management team. These results are a reflection of the commitment that the Board and management team have made to the success of microHelix. The Board remains dedicated to the long term growth of the company. We will continue to evaluate both internal and external opportunities to build our business while maintaining our commitment to providing exceptional service to existing and new customers."
Statements in this press release other than statements of historical fact are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current views and estimates of future economic and market circumstances, industry conditions, company performance and financial results. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are subject to risks and uncertainties that could cause the Company's actual future results to differ materially from the results discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, competition from existing or new products, production delays, lack of market acceptance of the Company's products, general economic conditions and such other risks and factors as are described from time to time in the Company's Securities and Exchange Commission filings. The forward-looking statements made today speak only as of today and the Company does not undertake any obligation to update any such statements to reflect events or circumstances occurring after today.
MICROHELIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
SEPTEMBER 30, 2005
Assets
Current Assets:
Cash $ 121,282
Accounts receivable, net of allowance of $74,551 1,038,812
Inventories, net of reserves 1,256,103
Prepaid expenses and other current assets 74,503
-----------
Total current assets 2,490,700
Property and equipment - net 973,148
Intangible assets - net 620,733
Goodwill 1,620,218
-----------
Total assets $ 5,704,799
-----------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 1,264,510
Accounts payable-related parties 63,947
Accrued liabilities 528,027
Accrued dividends 168,750
Line of credit 760,982
Obligations under capital leases 10,193
Notes payable to shareholders 479,261
Customer deposits 156,969
-----------
Total current liabilities 3,432,639
-----------
Long-Term Liabilities:
Obligations under capital lease, less current maturities 10,821
Deferred tax liability 534,104
Notes payable to shareholders, less current maturities 870,739
-----------
Total long-term liabilities 1,415,664
-----------
Total liabilities 4,848,303
-----------
Shareholders' Equity:
Preferred Stock, no par value, 5,000,000 shares
authorized, 2,250,000 issued and outstanding 1,975,793
Common stock, no par value, 25,000,000 shares
authorized, 2,116,246 issued and outstanding 14,505,264
Additional paid-in capital 6,318,667
Accumulated deficit (21,943,228)
-----------
Total shareholders' equity 856,496
-----------
Total liabilities and shareholders' equity $ 5,704,799
-----------
MICROHELIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30 September 30
---------------------- ------------------------
2005 2004 2005 2004
---------- ---------- ----------- -----------
(restated) (restated)
Sales $2,853,555 $ 414,627 $ 5,715,834 $ 883,839
Cost of sales 2,294,342 337,028 4,952,618 1,097,716
---------- ---------- ----------- -----------
Gross profit (loss) 559,213 77,599 763,216 (213,877)
---------- ---------- ----------- -----------
Operating Expenses:
Research and
development -- 671 -- 63,618
Sales and marketing 163,083 (4,410) 305,959 25,987
General and
administrative 347,354 179,497 1,313,810 681,973
Amortization of
intangibles 50,769 -- 106,549 --
---------- ---------- ----------- -----------
Total operating
expenses 561,206 175,758 1,726,318 771,578
---------- ---------- ----------- -----------
Loss from operations (1,993) (98,159) (963,102) (985,455)
---------- ---------- ----------- -----------
Other income (expense):
Interest and other
income -- 7,927 450 37,348
Interest expense (69,351) (4,073) (134,563) (19,496)
---------- ---------- ----------- -----------
Loss on sale
of assets -- (3,688) -- (3,688)
---------- ---------- ----------- -----------
Other income
(expense) - net (69,351) 166 (134,113) 14,164
---------- ---------- ----------- -----------
Loss from continuing
operations (71,344) (97,993) (1,097,215) (971,291)
Discontinued operations:
Income (loss) from
operations of wire
and cable division -- -- -- (122,877)
Loss on sale of wire
and cable division -- -- -- (129,816)
---------- ---------- ----------- -----------
Provision (Benefit)
for Income Taxes (81,074) -- (81,074) --
---------- ---------- ----------- -----------
Net Profit (loss) 9,730 (97,993) (1,016,141) (1,223,984)
Preferred Dividends (84,375) -- (168,750) --
---------- ---------- ----------- -----------
Net loss available
to common
shareholders $ (74,645) $ (97,993) $(1,184,891) $(1,223,984)
---------- ---------- ----------- -----------
Net loss per share
available to common
shareholders - basic
and diluted:
Net loss per share
from continuing
operations $ (.03) $ (.06) $ (.54) $ (.57)
Net loss per share
from discontinued
operations -- -- -- (.16)
---------- ---------- ----------- -----------
Net profit (loss) $ .00 $ (.06) $ (.50) $ (.73)
Weighted average
number of shares
outstanding
- Basic and Diluted 2,091,121 1,774,442 2,036,896 1,712,685