MISSISSAUGA, Ontario, May 15, 2024 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX:MBX, OTCQX:MBXBF, Microbix®)), a life sciences innovator, manufacturer, and exporter, reports results for its second quarter and first half of fiscal 2024 ended March 31, 2024 ("Q2" and "H1"), with strong growth in sequential and year-over-year quarterly revenues, reflective of ongoing progress to increase sales from its diagnostic-test related ingredients and devices businesses and resulting in net income for Q2 and H1. Management DiscussionResults for Q2 show robust growth in sales of Microbix's test ingredients ("Antigens") and test quality assessment products ("QAPs™"), which were collectively up by 34% versus prior year. The resulting revenues of over C$ 5.6 million led to meaningful net earnings and continue to set the stage for a record full-year fiscal 2024. Microbix believes sales growth will continue for Antigens and QAPs, alongside satisfactory progress of Kinlytic toward FDA re-approval and re-launch into the U.S. market. Quarter ending March 31, 2024 ("Q2")Q2 revenue was $5,632,901, a 34% increase from Q2 2023 revenues of $4,218,323. Antigen sales grew by 37% to $4,111,462 (2023 - $3,004,730), while QAPs grew by 27% to $1,399,596 (2023 - $1,101,684). Revenue from royalties increased to $121,843 (2023 - $111,910). Q2 gross margin was 53%, down from Q2 2023 gross margins of 60%. Gross margins were primarily impacted by product mix and and increased weighting of Antigen revenues during the quarter. Operating and finance expenses in Q2 increased by 4% relative to Q2 2023 . Q2 costs reflect the ongoing costs of our IT systems upgrades which began in the latter half of fiscal 2023 and amortization charges relating to the reversal of the impairment of the Kinlytic intangible asset which began at the end of fiscal 2023. Increased sales and higher gross margin dollars led to an operating income and net income of $377,730 versus a Q2 2023 operating income and net income of $31,616. Cash provided by operating activities was $839,245, compared to cash used in operating activities of ($1,055,856) in Q2 2023. Period ending March 31, 2024 ("H1")H1 revenue was $14,040,785, a 109% increase from H1 2023 revenues of $6,720,395. Included were antigen revenues of $6,065,138 (2023 - $4,008,537), up 51% from last year. QAPs revenues of $3,647,832 were up 51% from H1 2023 (2023 - $2,435,186), due in large part to the more than doubling of sales of our branded PROCEEDx® and REDx™ QAPs products. Revenue from royalties were $241,155 (2023 - $276,672). H1 revenues were also greatly influenced by the recognition of $4,086,000 in Kinlytic licensing milestone payments (2023 – nil). In summary, the H1 2024 sales growth result was driven by Kinlytic licensing revenues and significant growth in both our Antigens and QAPs businesses. H1 gross margin was 65%, up from 55% in H1 2023, primarily due to the impact of Kinlytic licensing revenues and stronger QAPs revenues. Operating expenses in H1 increased by 28% relative to H1 2023, principally due to US$ 500,000 in investment-banking fees related to our Kinlytic licensing agreement that were absorbed into G&A in accordance with IFRS accounting practices. In addition, H1 costs reflect the on going costs of our IT systems which began in the latter half of fiscal 2023 and amortization relating to the reversal of the impairment of the Kinlytic intangible asset, which began at the end of fiscal 2023. Overall, strong H1 revenues led to an operating income and net income of $2,833,109 versus a H1 2023 operating loss and net loss of $1,267,647. Cash provided by operating activities was $2,178,196, compared to cash used in operating activities of $1,769,723 in H1 2023, with much of the change coming from operating income and changes in working capital balances during the period. At the end of Q2, Microbix's current ratio (current assets divided by current liabilities) was 6.64 and its debt to equity ratio (total debt over shareholders' equity) was 0.37, both measures having improved from the prior year second quarter (Q2 2023) and the preceding fiscal year end (Q4 2023). FINANCIAL HIGHLIGHTS                       Three months ended   Six months ended   For the three months and six months ended   March 31, 2024   March 31, 2023   March 31, 2024   March 31, 2023                         Total Revenue   $ 5,632,901   $ 4,218,323     $ 14,040,785   $ 6,720,395